Jobless Claims disappointed as they rose back to nearly 400K (399K vs expectations 375K & previous 375K revised higher) and this data from a shorter week. Retail Sales data was also surprisingly weak considering the holiday period (.1% vs .4% consensus & .4% previous. Ex-Autos .0% vs .2% expected and .2% previous.). Business Inventories also declined sharply (.3% vs .5% consensus and .8% previous.) meaning restocking isn't taking place.
The European Union chickened-out of imposing Iran sanctions for 6 months which must have been a blow to the WH. Does it surprise you the Europeans got weak in the knees? I thought not. That announcement caused crude oil to drop nearly $2.00 per bbl, while gold continued its rebound. Bonds were slightly lower in price.
In the eurozone today ECB president Mario Draghi decided the best defense is a good offense and cleverly spun a yarn that his policies are working. Draghi further states that "interest rates will remain low for an extended period"...where have we heard this before? This statement caused the euro to rally about 1% on the day perhaps squeezing some shorts.Stocks just don't seem to care about much and are hopeful future earnings reports will justify their enthusiasm. As noted yesterday the trailing PE is around 13X for the S&P 500 which is low but not historically so. Forward earnings are what bulls should care about if the current rally is to have legs. Below is a chart indicating forward looking earnings are flattening out. From the WSJ's analysis of FOMC Minutes Thursday is this nugget suggesting both Bernanke and Geithner were incompetent regarding the housing market decline beginning in 2006: "Bernanke, who took over from Alan Greenspan as Fed chairman in February 2006, is cautious in making forecasts about housing and the wider economy. But, together with then New York Fed chief Timothy Geithner, he believes the slowdown in housing is healthy and likely to end well." On this kind of ineffectiveness he gets reappointed and Geithner is promoted. Volume remains so light that this condition in itself is becoming a greater risk with each passing day. Breadth per the WSJ is positive meaning we're becoming overbought. You can follow our pithy comments on twitter and join the conversation with me on facebook. SPY - The SPDR® S&P 500® ETF is a fund that, before expenses, generally corresponds to the price and yield performance of the S&P 500 Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details IWM - The iShares Russell 2000 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the small capitalization sector of the U.S. equity market as represented by the Russell 2000 Index. The index represents the approximately 2,000 smallest companies in the Russell 3000 Index.
See more details QQQ - PowerShares Capital Management LLC is passionate about our goal of delivering the highest quality investment management available through one of the more benefit-rich investment vehicles ever created, the exchange-traded fund.PowerShares QQQ¿, formerly known as "QQQ" or the "NASDAQ- 100 Index Tracking Stock®", is an exchange-traded fund based on the Nasdaq-100 Index®. The Fund will, under most circumstances, consists of all of stocks in the Index.
See more details Continue to U.S. Sector, Stocks & Bond ETFs
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Check Out Our Best Services for Investors
Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.