logo
  Join        Login             Stock Quote

Stock Market Opening Report - November 21, 2012

 November 21, 2012 12:03 AM
 


(By Rich Bieglmeier) Stocks struggled to break-even on Tuesday, but buyers did manage to fight off sellers in the afternoon to avoid a moderately lower day of trading. It was the second day of successively lower volume as stocks try to fight their way higher.

Federal Reserve Chairman Bernanke did his best to spook the equity market with his speech, and question and answer session. Big Ben believes the fiscal cliff is preventing the economy from breaking out. He says the economy will go into recession if D.C. manages to flub negotiations. Bernanke credits an improving housing market for his tempered, but upbeat, outlook.

It was good to see bulls be more engaged than bears as the day wore on despite Ben Bernanke. It could be a sign that sellers have fatigue, for now. That could change this morning if Jobless Claims show a second week of skyrocketing applicants.

[Related -Family Dollar Stores, Inc. (NYSE:FDO) Q1 Earnings Preview: What To Watch?]

Wall Street expects to see 415,000 new claims following last week's alarming 439,000 post-election result. We would be surprised to see a number in excess of 415,000. iStock thinks a surprise in the range 405,000 could be on the table. Last week's result seemed out of place, despite Sandy's impact. Stocks could rally if a number under 400k is delivered.

The pre-market jobs news is likely to get stocks off to a fast start, in one direction or the other, and then volume should trickle to a drip shortly after lunch. Traders will join everybody else in the race for the door for the Thanksgiving holiday and Black Friday shopping.

[Related -Dollar Tree, Inc. (DLTR): Healthy Cash Flow, Superior Returns Should Allay Investor Concerns]

We expect to hear anecdotal evidence of robust sales and incredible traffic on Friday. It seems to be the case every year. According to a survey of 5,000 consumers by Deloitte for its annual holiday survey shows that 63% of respondents say they will spend the same or more this year than last while 37% will spend less. However, more than half (51%) say they will do their shopping at discount stores; so, sales might be up, but margins could be lower. If the survey is accurate, then stores like Dollar Tree, Inc. (DLTR) could fare well in the weeks ahead.

We hope that all our readers and families have a safe and enjoyable Thanksgiving, see you Friday.

Happy Trading.

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 imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

article imageTripadvisor Inc. (TRIP) Q2 Earnings Preview: On Target Enough?

Tripadvisor Inc. (NASDAQ:TRIP) will release its second quarter financial results after market close on read on...

article imageFacebook Inc. (FB) Q2 Earnings Preview: Scoring Big on the World Cup

Facebook Inc. (NASDAQ:FB) will post its second-quarter 2014 financial results after the market close on read on...

article imageThe Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater

The Boeing Company (NYSE:BA) will publish its second-quarter financial results before the open of the 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.