Join        Login             Stock Quote

Has Market Momentum Run Out?

 January 31, 2013 12:15 PM

The markets are slightly lower in early trading.  The S&P 500 is lower for a second day, something we haven't seen since in several weeks.  It's still early in the session, so the market could rebound and close strong.  But if we do get a second down day, some investors will ask "Has the market momentum run out?"

In economic news, personal income came in much stronger than expected at +2.6% for December, but a big boost was from investors locking in capital gains ahead of a tax hike.  The Chicago PMI for January rose to 55.6 from 50.0 last month.

Asian markets ended mostly lower.  Japan's manuf. PMI improved to 47.7 from 45.0 last month.  GDP in Taiwan rose +3.4%.  And Hong Kong's retail sales rose 8.8%, above expectations.

[Related -QUALCOMM, Inc. (NASDAQ:QCOM): Becoming A Core Holding?]

Europe is also lower today, led down by Spain's -2% decline.  In Germany, retail sales slid -1.7%, below expectations.

Stocks rising on earnings: QCOM, R, MA, UA, AN, MJN, OXY, DLR, HSY

Stocks falling on earnings:  COP, DOW, UPS, AZN, ENR, D, HAR, ZMH, CL, LQDT

The dollar is slightly lower, but so are most commodities. Oil prices are down near $97.50 and gold prices are weaker to $1664.  Silver and copper prices are lower as well. 

The 10-year yield is hovering just below the 2.0% level at 1.99%.  And the volatility index is up fractionally to 14.35.

Trading comment: We talked yesterday about this bull stampede getting a little long in the tooth and needing a rest.  While that remains true I would expect dip buyers to step in after a small pullback and add to equities, as it seems like many investors remain underweight equities if we are truly in an environment where corporate profits are improving and the tailwind of housing market recovery boosts consumer and investor mindsets.

[Related -Forest Laboratories, Inc. (NYSE:FRX): Should Astrazeneca Plc Buy Forest Labs?]

KAM Advisors has long positions in DLR and QCOM



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

rss feed

Latest Stories

article imageTackling China's Debt Problem: Can Debt-Equity Conversions Help?

China’s high and rising corporate debt problem and how best to address it has received much attention read on...

article imageWill Job Growth Kill The Bear-Market Signal For Stocks?

It’s all about jobs now. Actually, it’s always been about jobs. But the stakes are even higher—perhaps more read on...

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

Popular Articles

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.