STTG Market Recap Jan 22, 2015 – Stock Trading To Go
VIDEO UPDATE: Watch the market report here!
Despite more or less doing what was rumored yesterday, the actions by the European Central Bank this morning set indexes on fire. This has been a consistent pattern for years now. One day it will not have the same effect but until that day comes traders will react in knee jerk reaction. The S&P 500 gained 1.53% and the NASDAQ 1.78%. There had been a long standing rejection of quantitative easing by the Germans but they have finally been overruled by today’s actions.
Mario Draghi led the European Central Bank into a new era, committing to a quantitative easing program worth at least 1.1 trillion euros ($1.3 trillion) to counter the threat of a deflationary spiral. The 67-year-old Italian’s gamble is that the benefits of QE — should it work — outweigh the threat of a backlash in Germany. The ECB president shrugged off determined opposition led by German officials with a pledge to buy 60 billion euros every month through September next year in a once-and-for-all push to put more cash into circulation and revive inflation. To assuage critics, the region’s 19 national central banks will make 80 percent of the purchases and take on any risk they carry.
In yesterday’s recap we wrote this in regards to the S&P 500:
….with the S&P 500 we see a very obvious level (2045) where both the 20 and 50 day moving averages sit. Just above that at 2060 is our upper trend line in purple. Any “explosive” type move in response to the QE Thursday, and those are areas to keep an eye on.
Well we got through all those levels eventually today. And we may be right back to a bullish condition; another day or two probably needed to confirm.
The NYSE McClellan Oscillator is firmly in the black and now at best levels of 2015.
Google (GOOG) is trying to reverse again. It tried a few weeks ago but got caught up in the market selloff. Various reports say the company will team with Sprint (S) and T-Mobile (TMUS) to sell wireless plans to customers.
Southwest (LUV) jumped to a record as profit rose 71% on lower jet fuel prices.
Starbucks (SBUX) is up 4% to $86 in after hours after it met analysts’ profit and revenue estimates for the fiscal first quarter and posted same-store sales figures that were a bit better than forecast. The Seattle-based coffee seller, the second-largest U.S.-based restaurant measured by market cap, said revenue for the quarter rose 13% from last year to $4.8 billion, and adjusted earnings clocked in at 80 cents a share. Both were in line with consensus estimates. Global same-store sales, a key figure, climbed 5% from the year prior, slightly ahead of the 4.8% projection.
American Express (AXP) said it plans to cut more than 4,000 jobs or 6% of its workforce in an effort to rein in expenses. The credit card company also set aside more money to cover bad loans in the fourth quarter.
Source:
STTG Market Recap Jan 22, 2015 – Stock Trading To Go
