STTG Market Recap Jan 9, 2015 – Stock Trading To Go
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Watch tonight’s video market recap on my Ticker.tv channel, Mark333.
Friday closed out a very volatile week as two big down days were offset by two big up days, and then we closed out with a moderate down day. The S&P 500 fell 0.84% and the NASDAQ 0.68%. This despite a jobs reports from the government that was generally quite positive. The two negatives were the reasons for the drop in the unemployment rate (which was due to people leaving the work force), and a drop in wages.
Job creation kept the pace in December, with the U.S. economy creating 252,000 jobs to close out the year, while the unemployment rate dropped to 5.6%. The U.S. was expected to create 240,000 jobs in December, after adding an unexpectedly strong 353,000 jobs the prior month. The drop in the headline rate had come in large part due to a decline in the labor force participation rate. Indeed, the participation rate continued to plummet, falling to a fresh 37-year low of 62.7%. Wages actually declining for the month by 5 cents an hour.
Next week we begin to get back into earnings season so make sure you know when your stocks report as that is usually a very volatile day.
We are in an area in the indexes where things are neutral. Despite the 2 big up days there are some concerns. We’ll have to watch next week to see if the environment improves. The S&P 500 broke over our upper trend line yesterday but back down thru it today. Let’s watch the 2080 area on the S&P 500 and 4800 for NASDAQ.
Today was a day of “good news” yet the yield on the 10 year dropped. That is not good.
Oil was weak again today – it might be forming a new bear flag. If it breaks to new lows after this bear flag we could have yet another swoon. Until we get back over this purple trend line we do not have a reversal to the upside.
Starbucks (SBUX) chief operating officer Troy Alstead, a 23-year veteran of the coffee king, is taking “an extended unpaid leave” from Starbucks. Starbucks did not give a reason in its press release for why Alstead, who also was once the company’s chief financial officer, was leaving.
Bed Bath & Beyond (BBBY) declines after saying yearly net sales will rise as much as 3.6%, compared with an earlier estimate of 3.9%. Comparable sales in the third quarter gained 1.7%, compared with analyst estimates of 2.8%. This had been a very well acting stock technically but sometimes you just get hit with news out of the blue and technical analysis won’t matter at all in those situations.
On the positive side we continue to see strength in a lot of mid cap type biotech stocks – Agios Pharam (AGIO) has broken out during the past few sessions. Kita Pharma (KITE) was upgraded today – it was a name we mentioned early this week.
Maxim Integrated (MXIM) is a semi conductor company which has been breaking out multiple times since late November.
That’s it for this week – we’ll see you back here next week; again if you have not taken the survey please do so. Thanks!
Original article:
STTG Market Recap Jan 9, 2015 – Stock Trading To Go
