Fed minutes came out at 2pm EST and caused a massive gyration... Fed Minutes shows that the central bankers discussed 'extensively' on a very large asset purchase program(might be pointing towards a widely hoped QE3). In the event if a QE3 is not announced, I believe a QE addicted Wall Street would have started selling everyone down. Before the minute came out, i was totally right on the downside.
The volumes were better on wednesday.. But the internals were totally screwed up by the minutes..
The main indices were pointing towards the upside, from a support level.The SPX held above 1400. Maybe there's still some upside to go in hopes of QE3.
|
|
| Stock Market Update |
16:15 ET Dow -30.82 at 13177.87, Nasdaq +6.41 at 3073.67, S&P +0.32 at 1413.49 :[BRIEFING.COM] Equities spent the majority of today's session in the red. After a lower open, stocks traded in a tight range until the release of FOMC minutes. After breaking through the unchanged line, stocks could not push much higher as they registered a flat close. The Nasdaq outperformed and ended higher by 0.2%.
The FOMC minutes revealed a discussion between members regarding the costs and benefits of a new large-scale asset purchase program, otherwise thought of as "QE3." Members of the committee agreed that additional easing could provide support for the economic recovery by further depressing longer-term interest rates. However, few members voiced concern over the impact such easing would have on markets which deal in Treasury securities and agency mortgage backed securities. Overall, the committee appears to be maintaining their stance and will provide additional easing if general economic conditions deteriorate further.
Homebuilders saw notable strength after Toll Brothers (TOL 33.01, +1.20) reported strong quarterly results highlighted by a $0.19 earnings beat. Rivals Standard Pacific(SPF 6.49, +0.29), PulteGroup (PHM 13.29, +0.50), MDC Holdings (MDC 33.88, +0.95), and DR Horton (DHI 19.01, +0.76) were all up between 3.5% and 5.0%.
Shares of two apparel retailers headed in opposite directions after announcing earnings. Express (EXPR 15.02, -1.87) slumped 11.1% after reporting an earnings beat and a revenue miss. Meanwhile, American Eagle Outfitters (AEO 22.13, +1.30) surged 6.2% after announcing in-line earnings and issuing upside guidance.
Discover Financial (DFS 38.43, +1.43) ended higher by 3.9% after announcing a partnership which will allow PayPal subscribers to use their accounts at retail merchants who accept the Discover card as a form of payment. Discover marked a new all-time high of $39.13 following the news while shares of PayPal's parent company, EBay (EBAY 47.00, +1.15) advanced 2.5%.
Dell (DELL 11.68, -0.66) slid 5.4% after delivering mixed earnings. The personal computer manufacturer exceeded earnings estimates but missed on revenues while issuing downside guidance. Peer Hewlett-Packard (HPQ 19.20, -0.73) was lower by 3.7% ahead of its earnings release after today's close.
Stocks in the telecom space were lower as MetroPCS (PCS 9.71, -0.44) slipped 4.3%. The pay-as-you-go carrier was down after introducing an unlimited plan with a monthly fee of $55. A price battle between the wireless provider and rival T-Mobile has been ongoing. Today, T-Mobile announced their own unlimited plan with a price tag of $89.99 per month.
Existing home sales for July hit an annualized rate of 4.47 million units, which is weaker than the rate of 4.55 million units that had been generally expected among economists surveyed by Briefing.com. The pace for July is up from the prior month rate of 4.37 million units.
Treasury yields had been on a steady rise since late July. However, longer dated yields were able to hold their 200-day moving averages after rising close to 50 basis points apiece as a result of the selling. After seeing a couple days of modest gains, heavy buying throughout today's session dropped yields to their lowest levels in more than a week. Declines of close to 9 basis points in both the 10- and 30-yr yields dropped them to 1.719% and 2.825%, respectively.
Tomorrow's economic data includes initial and continuing claims at 8:30 AM ET. In addition, the FHFA Housing Price Index and new home sales will be reported at 10 AM ET. ..NYSE Adv/Dec 1175/1830. ..NASDAQ Adv/Dec 916/1543. |
|
Lean Hogs made a massive fall of 3.46% while coffee priced fell by 1.28%
Following the minutes, the 10yr and the 30y had a sell down.
Tomorrow there will be the unemployment claims. I believe the minutes will have upward pressure on the market.
No comments:
Post a Comment