Traders Head out Early Friday
Stocks fluctuated Friday after a mixed batch of readings on consumer spending contributed to a muddled picture of the economy. The major stock indexes moved in a narrow band, alternately rising and falling in very light trading. Many traders were away on vacation, and those who were working had little reason to make any major moves because of economic data that remains confusing.
The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists' forecast of a gain of 0.5 percent. The report did show strength in auto sales, but it also showed that consumers are shying away from other purchases.
Some better news came from the University of Michigan/Reuters survey of consumer sentiment for the first part of August, which showed consumers are slightly more optimistic. An index based on the survey came in at 69.6, slightly above analysts' estimates and up from July's 67.8.
Earlier Friday, retailer J.C. Penney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. J.C. Penney joined competitor Kohl's Corp., which lowered its earnings outlook on Thursday.
These latest reports fell in line with a long string of conflicting data that has left investors unsure about where the economy is headed. Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.
Although J.C. Penney and Kohl's had disappointments for investors, second-quarter earnings overall have been strong and company executives are optimistic. The split between economic and earnings numbers has added to investors' murky view of the economy.
That uncertainty has led to heavy selling this week. The Dow Jones industrial average has lost 380 points over the past three days. But the big drop may also have lured some buyers back into the market Friday.
"Maybe it's getting ready to be bought again," Philip S. Dow, director of equity strategy at RBC Wealth Management in Minneapolis, said of the market. He noted that the market's recent declines have made stocks more attractive.
Still, that doesn't mean analysts are looking for the market to rally.
"We're in a fragile market," said Steven Goldman, chief market strategist, Weeden & Co. in Greenwich, Conn. He noted that the market's decline is feeding the lack of confidence among consumers and investors. That inevitably has an impact on the economy.
The Dow Jones industrial average was up 22.29, or 0.2 percent, at 10,342.32. The Standard & Poor's 500 index rose 0.43, or 0.04 percent, to 1,084.04. The Nasdaq composite index fell 4.28, or 0.2 percent, to 2,185.99.
Rising stocks were ahead of losers by 4 to 3 on the New York Stock Exchange, where volume came to a light 445 million shares.
For more information visit http://www.worldmarketmedia.com/779/section.aspx/2230/post/traders-head-out-early-friday
Questions and Answers
Scary markets are brought about by many factors, some normal, and some not so normal. It's often helpful to look backwards before getting too paranoid about the present. The S & L crisis of the early 80s might be an appropriate starting point.
How do we create a confidence building Stock Selection Universe? Simply operating on blind faith with one of the common definitions may be too simplistic, particularly since many of the numbers originate from the subject companies. Here are five filters you can use to come up with a listing of higher quality companies:
A cocktail of credit market laxatives is working its way into a constipated world economy. Relief is on the way. Today's prices may well be looked at as the lowest of the next ten years! Here's a list of things to think about or to do while Investment Grade value Stock prices are at ten-year lows:
By: Bolton Flautt In the digital world of today, websites, merchandising and marketing are a must, especially for celebrities, sports stars and rock bands.
Faulty Drone Software caused a helicopter to strafe Washington DC about a month ago and brings into question what the hell is going on out there in our Video Game society. The day is coming when one of those mallards lands in your front yard and kills your dog.
Stocks had mixed results in Asia overnight. The Nikkei was up almost one percent, while Australia and Shanghai were higher by about 0.3%, but the Hang Seng lost a small fraction. European indexes are generally little changed at the moment, with both the Footsie and the Dax up a fraction. US stock futures are up by about one third of a percent.
The growing Indian market is attracting investors on the ground of the promising and assured return. The online trading is very popular these days and most of the people prefer it for quick money.
Learn the fundamentals of committing cash in Stocks, Ties, Common resources, Merchandise, Actual estate We create Getting Inventory Industry straightforward for you with a comprehensive guide to committing. Any effective stock market buyer must be acquainted with the fundamentals of stock market committing.
Online share trading is one of the most popular financial markets in the world today; however, any people are hesitant in starting due to not knowing a lot about it. This article will help explain what online share trading is all about, how you can get involved for a low initial investment and what to consider before, during and after trading.
The stock market is mostly used to create money. . I am sharing my investment strategy as a retail investor. Most financial experts recommend investors to initially contact a financial advisor. Able to provide advice, it can ensure that the money an investor get a good return or not.
This article has discussed about the importance of Stop orders. Stop orders act like the life jackets
Stocks were mixed in Asian trade. The Nikkei, Australia and Hang Seng were all fractionally higher while Shanghai fell a quarter percent. European indexes are generally higher on the session with the Footsie higher by more than one percent and the Dax currently up by about three quarters of a percent. US stock futures are up more than a half percent.
The post meeting statement from the August FOMC meeting notified the market that the Fed would be "reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities."
I know you've seen this commercial…he has cherub red cheeks, hair, beard and moustache and looks like the Grizzly Adams, Warrior Slayer of IRS tax problems. TaxMasters Inc (OTCBB: TAXS) . God Bless you Patrick!!
China Shuangji Cement has announced today they have completed the installation of their new Zhaoyuan City cement production facility in China, the world's fastest growing industrial country.
Just how many different ways is GPS tracking technology used these days and will this technology soon become ubiquitous?
Discuss this Article
