logo
  Join        Login             Stock Quote

Stock Market Opening Report - November 15, 2012

 November 15, 2012 08:59 AM


(By Rich Bieglmeier) Slide, slide, slippity, slide stocks are taking investors for a dippity ride. Wall Street turned way negative following the release of the FOMC minutes, the President's press conference, and bombs flying in the Middle East. Boy, how things can turn so quickly.

The Fed appears unsure of what action it wants to take in its deliberations. There seems to be a growing consensus that it is about time to turn the spigot on full blast until inflation starts to rip of jobs come back. Want to guess which is likely to come first? I have that 70s feeling again, just not too into beads and bellbottoms.

As for the president, Mr. Obama say the folks making a little more need to pay a little more, and that's final, no and, if or buts. Republicans are starting to crack. They'll give in and anger the base into dismay. Read my lips, no news taxes – it's Groundhog Day all over again. Our guess is that after the tax-hikes go through, the US department of Fish and Wildlife will add families earning more than $250,000 and individuals making $200,000 or more to the endangered species list. Almost like magic, they'll just disappear. Wherever did they go?

[Related -Crude Rebound]

Let's see if we have this right? Errant bombs from Syria are flying into Turkey and Israel. Both are getting fired up at the Syrians, Israel chucked a few bombs back, and Turkey says you better cut it out if you know what's good for you. In the meantime, Israel takes out the top Hamas guy. Egypt and Hamas respond that enough is enough, put up your dukes.  It's getting so messy over there that folks taking to the streets and rioting in Europe ain't nothing but a thing.

[Related -The Fed Remains Optimistic On The US Economy For 2015]

It's starting to feel like the pants are a little too tight, and the button is about to come undone and fly off. iStock hopes not, but it sure seems like we've been at full moon wackiness for since the election.

All the nastiness, including the drive towards the fiscal cliff has put the NASDAQ, Dow, and S&P a checkpoint one. If the tape stays bloody, then it is 2,750ish for the NASDAQ, at least 12,400, maybe 12,100 for the Dow, and stops at 1,325, 1,300 and ultimately 1,275 for the S&P. If those levels fail, all of 2012's gains could be wiped clean.

With more than 90% of the S&P 500's Q3 earnings on the books, the market will have to find its way higher on political and economic news. Third quarter sales were dull, posting a mild gain of 2.62% while operating earnings grew at 2.38%, and as reported eps did the best with an increase of 8.77%.  For the fourth quarter, analysts expect operating earnings to pick up the pace and grow at 5.6% while sales remain in the neighborhood of 2.6% growth.

Earnings growth should lead to P/E expansion and give stocks a lift as we enter into 2013. However, it remains to be seen what effect income, capital gains, and dividend tax-hikes will have on the economy and stock prices. We believe the initial reaction will be negative as Wall Street reprices securities accordingly.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageCrude Rebound

Since the price of crude oil broke below $90 per barrel in September, the Brent global benchmark has been read on...

article imageShould You Invest In The Hottest New Trend In Finance?

Thanks to major changes in regulation, social media and technology, the business of banking has undergone read on...

article imageStrong Attractor in Action Pulling S&P 500 Down

The attractor is formed by the 200-day moving average and the 50% Fibonacci retracement of the up move from read on...

article imageIs The Weak Housing Market A Warning Sign For The US Economy?

Today’s US economic releases – housing starts and business survey data for the manufacturing sector – read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.