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!

Market Preview: Stocks Losing Luster

Stocks in this article: RIMM NKE AAPL GOOG SPY ^GSPC ^IXIC ^DJI

NEW YORK ( TheStreet) -- U.S. stocks have been riding high for most of the summer but investors in mutual funds still aren't feeling like they've missed the boat.

In fact, instead of putting money to work in stocks, they continue to siphon it out.

According to data from the Investment Company Institute, long-term mutual funds investing in equities saw outflows of $5.16 billion for the week ended Sept. 19, the highest amount in roughly a month. Funds investing in domestic stocks experienced outflows to the tune of $4.80 billion, the largest exodus since the week ended Aug. 1.

On the flip side, bond funds continued to reign supreme, racking up inflows of $7.99 billion for the week, while hybrid funds, which invest in both stocks and bonds, took in $1.64 billion.

Despite this recent rough patch, the major U.S. stock averages are still sitting within shouting distance of mullti-year highs but it's telling that the bullishness has never really boiled over. Between the presidential election, the fiscal cliff and Europe's ongoing drama, there's still a fair amount of apprehension out there.

Add in expectations for a year-over-year decline in third-quarter earnings, recent high-profile warnings from Caterpillar (CAT) and FedEx (FDX), and the considerable appreciation stocks have already enjoyed this year, and taking profits on big winners seems pretty prudent.

The stimulus programs unveiled this month by the Federal Reserve and European Central Bank are looking priced in at this point, so it's hard to too carried away by the fact that the punch bowl is going to remain full for a while. And as Philly Fed President Charles Plosser pointed out Tuesday, there's no guarantee all this accommodation is going to manifest itself in a spurt of sustained economic growth anytime soon.

Deutsche Bank said the uncertainty surrounding an eventual bailout for Spain is a contributing factor in the near-term.

"With the central bank liquidity guns loaded any short-term set back is unlikely to be severe but until Spain requests aid it's hard to see risk assets making much progress," the firm said. "Clearly such a request could come in the next few days but it's more likely in our opinion that it won't until a bit more market pressure is applied to the situation. There are also those who think that a request for aid is unlikely to come before key regional elections on October 21st."

As for Thursday's scheduled news, Research In Motion (RIMM) is reporting its numbers after the closing bell, and Wall Street is looking for a loss of 47 cents a share from the BlackBerry maker in its fiscal second quarter ended in August on revenue of $2.49 billion.

1 of 3

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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