All Posts (10732)
Sort by
The action in the U.S. heats up tomorrow with Bernanke headed for Capitol Hill to deliver his semi-annual testimony on the economy and monetary policy. The Fed Chairman will be peppered with questions about the weakness of the labor market and how he plans to turn things around. Based upon the minutes from the FOMC meeting in June, some policymakers were open to the idea of additional stimulus if the economy remains weak. Considering that Fed officials felt this way after only seeing one month of weak payroll growth (54k in May), we can only imagine how they feel after seeing last Friday’s abysmal report. If Fed officials were thinking about more stimulus back in June, the prospect of QE3 has now increased with last week’s labor market report.
By now, we should all know when the U.S. Dollar Index declines the major stock and commodity markets will generally inflate and trade higher. Stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Cliffs Natural Resources Inc.(NYSE:CLF) have all traded into positive territory as the U.S. Dollar Index declined. Should the U.S. Dollar Index rally or trade higher throughout the day these leading commodity stocks should pullback.
The Euro is tanking on the European debt issues. This is causing the Dollar to surge to the upside. The stronger Dollar is putting more pressure on the U.S. markets. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is sharply higher, trading at $21.67, +0.25 (1.17%).
This drop in the markets is coming on the back of a monstrous rally in the markets over the last two weeks. The Dow Jones Industrial Average was up more than 6% in less than two weeks. Friday, the rally finally started to fail as the Non Farm Payrolls numbers came in sharply below expectations. With just 18,000 jobs created last month, the markets dropped. Master the markets by learning and trading with the pros. Take the seven day free trial to the Research Center.
All sectors are taking a hit today but banks are under extreme pressure. This is due to their exposure to credit default swaps, stemming from the issues in Europe. Should European countries default, a new financial crisis would erupt. Goldman Sachs Group, Inc. (NYSE:GS) is trading at $131.85, -2.23 (-1.66%), JPMorgan Chase & Co. (NYSE:JPM) is trading at $39.52, -1.22 (-2.99%) and Wells Fargo & Company (NYSE:WFC) is trading at $27.65, -0.65 (-2.30%).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
The leading financial stocks are selling off this afternoon. J.P. Morgan Chase & Co.(NYSE:JPM) is probably the most important financial stock in the market. This financial giant is trading lower by $1.29 to $39.45 a share. When JPM stock is trading lower on the day, it will usually mean that all of the other financial stocks will be declining as well. Bank of America Corp.(NYSE:BAC), and Morgan Stanley(NYSE:MS) are making new 52 week lows this afternoon. Traders and investors are now wondering how much exposure these banks have in European debt.
Your guide to the InTheMoney Lifestyle is here...click here and enter the elite.
ISFAHAN, Iran (Reuters) - The market is full of oil and the rising price trend is "fake and imposed," Iran's president said on Tuesday, partly blaming a weak U.S. dollar which he said was being pushed lower on purpose.
"At a time when the growth of consumption is lower than the growth of production and the market is full of oil, prices are rising and this trend is completely fake and imposed," President Mahmoud Ahmadinejad said in a televised speech. http://www.dailypaul.com/52712/ahmadinejad-says-market-full-of-oil-price-trend-fake
A very good read folks
http://www.zerohedge.com/article/key-events-and-catalysts-week-ahead
We don’t have the ability (because of the overhang in housing and the problems in the financial sector) to engineera stronger recovery
Imagine that! Geithner acknowledges what I (and many others) have felt all along. The structural issues in the economy trump the government’s ability to engineer a recovery.
Some refreshing words from the Treasury Secretary, Tim Geithner this morning on Meet the Press. He had this to say: (15:20 into this clip)
