David Moenning�s Daily State of the Markets: 10/13
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The Fun Continues
Stocks opened higher and then turned tail and ran for the fifth straight day. The fun for the bears definitely continued yesterday as there was red ink for the 7th time in the last 8 session. The recent correction has now produced declines of -4.16% for the S&P 500, -3.33% for the DJIA, and -5.47% on the NASDAQ. Since the July peaks, the drops total -5.4%, -4.6%, and -8.2% respectively.
This correction isn�t about any single news item � it�s all about fear. Fear over the Fed�s plans, the future of the Fed, inflation, higher rates, the consumer doing less, an inverted yield curve, earnings, and a slowdown in the economy.
This morning stocks could get a boost from MCD, which raised guidance. In economic news, the Trade Deficit widened, but not as much as expected, Jobless Claims were little changed, and Import Prices came in much higher than expected. Bonds are lower in response (10-yr at 4.48%) with the yield at the highest level since early April. Oil is waffling and stock futures are slightly higher.
Stocks "In Play" This Morning:
GOOG � In talks with CMCSK to buy a stake in AOL
MCD � Guides Q3 higher
AMGN � Goldman reiterates outperform
STX/MXO � Downgraded at JPM
INTC � Seen cutting prices for dual core processors in 1st half of 06
NEM � Downgraded at UBS
LSTR � Beats Street with $0.60 vs. First Call est of $0.46
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
Stocks opened higher and then turned tail and ran for the fifth straight day. The fun for the bears definitely continued yesterday as there was red ink for the 7th time in the last 8 session. The recent correction has now produced declines of -4.16% for the S&P 500, -3.33% for the DJIA, and -5.47% on the NASDAQ. Since the July peaks, the drops total -5.4%, -4.6%, and -8.2% respectively.
This correction isn�t about any single news item � it�s all about fear. Fear over the Fed�s plans, the future of the Fed, inflation, higher rates, the consumer doing less, an inverted yield curve, earnings, and a slowdown in the economy.
This morning stocks could get a boost from MCD, which raised guidance. In economic news, the Trade Deficit widened, but not as much as expected, Jobless Claims were little changed, and Import Prices came in much higher than expected. Bonds are lower in response (10-yr at 4.48%) with the yield at the highest level since early April. Oil is waffling and stock futures are slightly higher.
Stocks "In Play" This Morning:
GOOG � In talks with CMCSK to buy a stake in AOL
MCD � Guides Q3 higher
AMGN � Goldman reiterates outperform
STX/MXO � Downgraded at JPM
INTC � Seen cutting prices for dual core processors in 1st half of 06
NEM � Downgraded at UBS
LSTR � Beats Street with $0.60 vs. First Call est of $0.46
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: INTC
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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