Trading Blog - Daily Market Report

Stocks pull lower on Spanish fears and weak data $XAUUSD

The S&P500 fell to a four month low as investors grew concerned about the state of Spanish banks following ratings downgrades from Moody's. The unresolved political situation in Greece also continues to concern the market
Manufacturing data in the US was weaker with the Federal Reserve's Bank of Philadelphia's general economic index falling to –5.8 this month. This is the first fall in eight months and goes against the 10.0 median consensus
Facebook is scheduled to list on the NASDAQ tomorrow under ticker code FB after the company successfully raised USD16 Billion at $38 per share to value the company at over USD100 Billion, a record for a technology stock
Caterpillar dragged the Dow down lower, falling 4.5% after the construction and mining equipment maker reported slowing sales for the month of April
Wal-Mart managed to beat the doom and gloom and rallied 4.2% after the retail giant reported a better than expected quarterly profit
DOW –1.24%, S&P500 –1.51%, NASDAQ –2.10%
US Dollar Index rallied for the 14th day in a row due to EU fears
Gold had a 2.5% bounce and Crude held US92.00 on new US pipeline news

Markets were weaker overnight as Greek concerns worsen with the political stalemate leading to new elections. With the popularity of the left wing Syriza Party growing, investors are concerned than a newly elected Greek government may renege on bailout terms and create grounds for a potential exit from the European Union
The S&P500 sold off for a fourth day in a row despite stronger housing data and improving industrial production. Housing starts rose 2.6% and Industrial Production increased 1.1% last month, the most since December 10
JC Penny fell 19.7% to $16.75 per share, recording its biggest fall since 1973 after the company cut its dividend. A recent restructure has seen Q1 sales hit harder than expected
GE Electric rallied 3.3% after it finance arm won a regulatory approval
Leading the Dow moves was GE which was up 3.26%, BAC, AA and JPM however were all down 2.60%, 2.53% and 2.15% respectively
DOW –0.26%, S&P500 –0.44%, NASDAQ –0.68%
USD index rose for a 13th day in a row, Gold fell over 1.00%, now down over 19% since the August high. Crude continues to fall down another 1.2%

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

US stocks ended the session weaker to extend recent losses after Greek politicians failed to form a new government after recent elections. Greece will now more than likely hold new elections with markets concerned that a newly elected government may reject the recent bailout conditions
Although the EU crisis is deepening the EU avoided a second recession in as many years after German GDP rose more than expected. The economy grew 0.5%, beating the consensus of a 0.2% contraction
There was some encouraging US economic data overnight with the Empire Manufacturing Index increasing to 17.09 from 6.6 in the last month. Retail Sales rose 0.1% which came in slightly less than expected
The S&P500 fell for the third day in a row with the index now down more than 6% from the highs seen in April
Cosmetics giant Avon fell 9.7% after Coty Inc withdrew their takeover offer. Chesapeake Energy also fell 7.8% after a broker downgrade
DOW -0.50%, S&P500 –0.57%, NASDAQ –0.30%
US Dollar Index rallied for a record 12th day in a row on Greek concerns
Gold was off slightly and Crude fell 0.8% on expected higher inventories

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

US markets have been lower in four out of the last five trading days with speculation that Greece may exit the EU intensifies. Despite recent elections Greek politicians have struggled to form a government
Financial and energy stocks led the losses in the S&P overnight. JPM and BAC led the major financials lower and European banks were also weaker with continued concerns surrounding Greece. Energy stocks were hurt by a slump in commodity prices due to European uncertainty and a potential continuation of the Chinese slowdown
European Industrial production unexpectedly fell for the month of March, the index fell 0.3% against economists expectations of a rise of 0.4%
Leading the moves on the Dow was JPM, BAC, INTC and GE which all fell 3.17%, 2.65%, 2.23% and 2.16% respectively
DOW -0.98%, S&P500 –1.11%, NASDAQ –1.06%
The EUR weakened to its lowest level in more than three months against the USD on Greek concerns. The AUD has fallen below parity
Gold fell to a Dec 30 low and Crude made a five month low overnight

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

The fallout from JP Morgan's USD2.00 Billion hedging loss continues to roil the financial markets with JPM losing another 9.28% on Friday's session. Financial stocks led the S&P500 to a two month low despite stronger consumer confidence data which hit a four year high
The political stalemate in Greece rolls on with the heads of the major parties meeting with Greek President Karolos Papoulias failing to bring an outcome
China moved to control the pace of its recent economic slowdown by cutting the amount of cash banks must set aside as reserves
In some brighter news computer hardware maker Nvidia Corp rallied 6.4% after its sales forecast topped estimates amid stronger demand
Majors to report this week are JC Penney and Home Depot on Tuesday, Limited Brands and Target on Wednesday and Wal-Mart on Thursday
DOW –0.27%, S&P500 –0.34%, NASDAQ 0.01%
USD made four month highs against the EUR on Greek fears
Gold continues to trade at support levels around the USD1580.00 level while Crude was softer late on Fridays session making a USD95.56 low

Published by Spectrum Live Pty Ltd | www.spectrumlive.com

US stocks were weaker again overnight with the Dow extending its losses to its sixth session in a row. This marks the longest losing streak in the Dow since August of last year. Markets continue to fret about the potential outcomes in Greece as the country struggles to reach a political outcome after recent elections
The volatility in the market continued to rise overnight with the CBOE Volatility Index breaking through 20.0 again overnight
News Corp rallied after the close after it reported stronger earnings and profit. News reported a 47% rise in Q3 net income or 38c p/s
Cisco Systems fell 8.3% to close at $18.78 in extended trade after forecasted earnings were weaker than expected. This is despite the company beating quarterly earning estimates overnight
DOW –0.75%, S&P500 –0.67%, NASDAQ –0.39%
The USD Index traded to 8 week highs. AUD is flirting with parity
Gold is trading below USD1600.00 and Oil fell for the 6th day in a row