STOCKS DO NOTHING: Here's what you need to know



RTR40YUP
A
businessman takes a mid-day nap in the lobby of a midtown hotel
in the Manhattan borough of New York August 1, 2014.



Carlo Allegri/REUTERS



Stocks jumped after strong US economic data on Tuesday, but gave
up some of those gains throughout the day.

All three major indexes finished in the green, but it was still
the 32nd day in a row in which the S&P 500 did not moved
by 1% in either direction.

After trading well into the red early in the day, oil also jumped
after reports that Iran may agree to freeze production along with
the rest of OPEC.

We’ve got all the headlines, but first, the scoreboard:

  • Dow: 18,547.30, +17.88, (+0.10%)
  • S&P 500: 2,186.90, +4.26, (+0.20%)
  • Nasdaq: 5,260.08, +15.47, (+0.30%)
  • WTI crude oil: $48.04, +$0.63 (+1.33%)

  1. The US housing market looked strong.
    New home sales surged
    to 654,000 the highest level since October 2007. The number
    smashed expectations of 580,000 homes sold.

  2. US manufacturing expanded, but threw up a “warning.”

    Markit’s flash manufacturing PMI fell to 52.1, missing
    expectations of a 52.7 print. While this is still in
    expansionary territory and export data looked strong, weak
    order books during the month signaled a “warning light”
    according to Markit Chief Business Economist Chris Williamson.

  3. Best Buy crushed earnings and the stock leaped.
     Same
    store sales beat expectations, rising 0.8% compared to
    expectations of a 0.6% drop. Earnings per share also beat
    analysts’ forecasts at $0.57 per share against projections of
    $0.43 per share.

  4. Toll Brothers luxury homebuilders reported strong
    growth.
     The luxury homebuilder reported higher home
    orders, up 18.2% to 1,748 units from the year before. It also
    raised it’s projection for the average sale price to $840,000
    to $850,000 from $820,000 to $850,000.

  5. Oil leaped after rumors Iran will play ball with OPEC.

    Reuters reported that Iran may support actions by the oil
    cartel to limit production among the nations in order to
    combat falling crude prices.

  6. Oscar, a health care startup, is dropping two of its Obamacare
    markets.
    The $2.8 billion health insurance company
    that is trying to revolutionize health insurance said it will
    drop its coverage through the public exchanges in New Jersey
    and Dallas, Texas.

  7. Mylan, the maker of EpiPen’s, tanked after scrutiny from
    lawmakers.
    Shares of the pharmaceutical company fell 4% in
    trading Tuesday after congressional leaders expressed
    displeasure over the company’s price hiking for its allergy
    fighting EpiPen’s.
Good read:  GM beats on earnings (GM)

 Additionally:


For the US economy, it all comes back to the labor market.


Investors are all leaning one way in the market, and that could
lead to a serious ‘shock.’


Companies bought a lot of their own stock to meet earnings
targets.


Student debt could be a serious problem for retailers.



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STOCKS DO NOTHING: Here's what you need to know



RTR40YUP
A
businessman takes a mid-day nap in the lobby of a midtown hotel
in the Manhattan borough of New York August 1, 2014.



Carlo Allegri/REUTERS



Stocks jumped after strong US economic data on Tuesday, but gave
up some of those gains throughout the day.

All three major indexes finished in the green, but it was still
the 32nd day in a row in which the S&P 500 did not moved
by 1% in either direction.

After trading well into the red early in the day, oil also jumped
after reports that Iran may agree to freeze production along with
the rest of OPEC.

We’ve got all the headlines, but first, the scoreboard:

  • Dow: 18,547.30, +17.88, (+0.10%)
  • S&P 500: 2,186.90, +4.26, (+0.20%)
  • Nasdaq: 5,260.08, +15.47, (+0.30%)
  • WTI crude oil: $48.04, +$0.63 (+1.33%)

  1. The US housing market looked strong.
    New home sales surged
    to 654,000 the highest level since October 2007. The number
    smashed expectations of 580,000 homes sold.

  2. US manufacturing expanded, but threw up a “warning.”

    Markit’s flash manufacturing PMI fell to 52.1, missing
    expectations of a 52.7 print. While this is still in
    expansionary territory and export data looked strong, weak
    order books during the month signaled a “warning light”
    according to Markit Chief Business Economist Chris Williamson.

  3. Best Buy crushed earnings and the stock leaped.
     Same
    store sales beat expectations, rising 0.8% compared to
    expectations of a 0.6% drop. Earnings per share also beat
    analysts’ forecasts at $0.57 per share against projections of
    $0.43 per share.

  4. Toll Brothers luxury homebuilders reported strong
    growth.
     The luxury homebuilder reported higher home
    orders, up 18.2% to 1,748 units from the year before. It also
    raised it’s projection for the average sale price to $840,000
    to $850,000 from $820,000 to $850,000.

  5. Oil leaped after rumors Iran will play ball with OPEC.

    Reuters reported that Iran may support actions by the oil
    cartel to limit production among the nations in order to
    combat falling crude prices.

  6. Oscar, a health care startup, is dropping two of its Obamacare
    markets.
    The $2.8 billion health insurance company
    that is trying to revolutionize health insurance said it will
    drop its coverage through the public exchanges in New Jersey
    and Dallas, Texas.

  7. Mylan, the maker of EpiPen’s, tanked after scrutiny from
    lawmakers.
    Shares of the pharmaceutical company fell 4% in
    trading Tuesday after congressional leaders expressed
    displeasure over the company’s price hiking for its allergy
    fighting EpiPen’s.
Good read:  This pocket-sized Bluetooth speaker is perfect for the outdoors

 Additionally:


For the US economy, it all comes back to the labor market.


Investors are all leaning one way in the market, and that could
lead to a serious ‘shock.’


Companies bought a lot of their own stock to meet earnings
targets.


Student debt could be a serious problem for retailers.



Source link

Share This Post