This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Investors Face a Week of Whipsaws: Dave's Daily

NEW YORK ( ETF Digest) -- Stocks didn't like earnings news and economic data overall. In the eurozone, Spain sold some 10 year debt (mostly to Spanish banks and perhaps the ECB) at levels below 6% but only to see prices fall and yields rise in the secondary market. Equity indices in the eurozone were markedly weaker. Polling in France shows Sarkozy no doubt losing to the socialists which would mean austerity agreements would go out the window.

Earnings reports focused primarily on Morgan Stanley (MS) and Bank of America (BAC). Frankly, one would need a forensic financial archeologist to wade through the release to find the "real deal" from each company. The standout category had to do with both company's DVA (Debt Value Adjustments). Both companies bonds are being revalued lower. As a book entry trick the company's may then deduct the loss in value of their own debt against earnings. MS after all is facing a three notch downgrade from Moody's as I understand it. After all these deductions were counted both companies could then report slightly positive earnings in lieu of losses: BAC $25 (stock slightly lower by 1.60%) and MS $.71 (stock higher by 2.25%).

Economic data released Thursday began with Jobless Claims (388K vs expected 365K and prior revised higher to 386K from 380K) which allowed for another beat, however the overall trend is heading south. Existing Home Sales (4.4M vs 4.62M expected and prior 4.59M) was a mild disappointment but completed the week unimpressively for all housing data. The important Philly Fed Survey (8.5 vs 12 expected and prior 12.5) was a disappointment as well reflecting an ongoing economic slowdown. Lastly Leading Economic Indicators (.3% vs .3% expected and prior .7%) also confirmed slack economic conditions.

U.S. stocks gave up most of the week's gains and now it's up to bulls to launch a Friday "stick save" to close the week positively. A positive word here or there from Bernanke of more not less stimulus could stampede the herd certainly. Let's not forget another Fed meeting next week.

The name of the game with earnings is to beat much lowered estimates and in late trading we see this with reduced earnings that beat with Microsoft (MSFT) and Advanced Micro Devices (AMD).

Gold (GLD) and the dollar (UUP) were relatively flat as investors there continue to scratch their heads over future direction. Overall commodity markets (DBC) and oil (USO) were also mostly flat. Bonds (IEF) were once again the winner on the day given falling stock markets.

Volume was sharply higher than the previously this week. It is also common to see higher volume on sell days. Breadth per the WSJ was negative.

Join the conversation with us on twitter & 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. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. The portfolio is rebalanced quarterly and reconstituted annually.
See more details

Continue to U.S. Sector, Stocks & Bond ETFs

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs