David Moenning Daily State of the Markets: 11/22
Tweet
Share
E-mail
Just a Speed Bump
Other than the Dow moving back into positive territory for the year, the primary story for the market yesterday was the latest update on the health of the economy. The Conference Board�s Index of Leading Economic Indicators confirmed that Katrina and Rita were more of a speed bump for the economy than the brick wall that had been feared.
Although the news didn�t really have much of an impact on the market, the fact that the LEI rebounded strongly in October provided a solid backdrop for the bulls. The ten economic indicators, which are intended to be a precursor of what is to come in the economy, advanced +0.9% last month, which was better than the expectations for a gain of +0.7%, and more than reversed September�s hurricane-induced drop of -0.8%.
With the positive economic news providing a nice background, the bulls decided to extend their run in the last hour by tacking another 54 points. This brings the month�s gain to 380 points and finally puts the DJIA back in the black for the year. While the pessimists will argue that it�s been 215 trading days of running in place, the bulls are just happy to see the plus sign return.
Going forward, the fate of market�s next move may fall on the mood of shoppers. Starting Friday, all eyes will be on the malls as traders anxiously await indications of how retailers will fare during this year�s holiday shopping season. Most feel the results will be solid, which is an improvement from the view that was prevalent with oil trading above $60.
Turning to this morning, there is no economic news scheduled for release today, but we will get a peek at the minutes from the latest Fed meeting at 2:00 pm. Oil continues to move higher this morning, which is putting a bit of a damper on the mood in the early going. Crude futures are up by $1.03 and are currently trading at $58.74 which is pulling stock futures lower (Dow -17, S&P -2.40, and NASDAQ -5.50).
So with stocks overbought and the Thanksgiving holiday quickly approaching, we should expect to see volumes and interest wane, which of course, could perhaps add some volatility to the mix.
Stocks "In Play" This Morning:
ABS � Reported hurricane-impacted earnings of $0.22 vs. $0.27
TGT � Pace of sales �somewhat improved� last week
PEP � Buying SLE�s European snacks business
HAL � Reiterated Buy at UBS
AAPL � NY Post reports iTunes now nation�s 7th largest retailer of music
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: PEP
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
Other than the Dow moving back into positive territory for the year, the primary story for the market yesterday was the latest update on the health of the economy. The Conference Board�s Index of Leading Economic Indicators confirmed that Katrina and Rita were more of a speed bump for the economy than the brick wall that had been feared.
Although the news didn�t really have much of an impact on the market, the fact that the LEI rebounded strongly in October provided a solid backdrop for the bulls. The ten economic indicators, which are intended to be a precursor of what is to come in the economy, advanced +0.9% last month, which was better than the expectations for a gain of +0.7%, and more than reversed September�s hurricane-induced drop of -0.8%.
With the positive economic news providing a nice background, the bulls decided to extend their run in the last hour by tacking another 54 points. This brings the month�s gain to 380 points and finally puts the DJIA back in the black for the year. While the pessimists will argue that it�s been 215 trading days of running in place, the bulls are just happy to see the plus sign return.
Going forward, the fate of market�s next move may fall on the mood of shoppers. Starting Friday, all eyes will be on the malls as traders anxiously await indications of how retailers will fare during this year�s holiday shopping season. Most feel the results will be solid, which is an improvement from the view that was prevalent with oil trading above $60.
Turning to this morning, there is no economic news scheduled for release today, but we will get a peek at the minutes from the latest Fed meeting at 2:00 pm. Oil continues to move higher this morning, which is putting a bit of a damper on the mood in the early going. Crude futures are up by $1.03 and are currently trading at $58.74 which is pulling stock futures lower (Dow -17, S&P -2.40, and NASDAQ -5.50).
So with stocks overbought and the Thanksgiving holiday quickly approaching, we should expect to see volumes and interest wane, which of course, could perhaps add some volatility to the mix.
Stocks "In Play" This Morning:
ABS � Reported hurricane-impacted earnings of $0.22 vs. $0.27
TGT � Pace of sales �somewhat improved� last week
PEP � Buying SLE�s European snacks business
HAL � Reiterated Buy at UBS
AAPL � NY Post reports iTunes now nation�s 7th largest retailer of music
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: PEP
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
You May Also Be Interested In
- After-Hours Stock Movers: NKE, BE, STZ, RIG
- Comcast, Viridian Therapeutics jump premarket; Doximity slips
- After-Hours Stock Movers: AVAV, PRAX, VSH, CNXC, SHAZ
Create E-mail Alert Related Categories
Contributors, Special ReportsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
