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May 2012
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Archive for the Stocks Category

Oil Rises On Economic Growth Outlook -

Crude oil rose to $103.41 during afternoon trading and settled at $102. 24 a barrel.  An improved outlook for US economic growth also sent the stock market to a five month high.  In addition, tensions in Iran and Nigeria raised supply concerns for the near term.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/01/10/us-markets-oil-idUSTRE7AD06820120110

Jim Sutliff

Federal Reserve To Release Forecasts -

The Federal Reserve has announced that they will release their forecasts for the Federal funds rate.  The move will increase transparency at the Federal Reserve at may help with financial planning for businesses and investors.  Monetary policy expectations should be released at the next meeting on January 24th and 25th.  The Fed funds rate is expected to remain low for the remainder of 2012.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-03/fed-officials-will-make-public-own-forecasts-for-key-rate-at-next-meeting.html

James Sutliff

Economic Data Drives Oil Higher -

Economic data sent oil prices higher in trading on Tuesday.  Housing starts and building permits rose and data from Europe looked strong.  Also, supplies of crude oil fell 4.6 million barrels last week which was higher than analyst expectations.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/12/20/us-markets-oil-idUSTRE7AD06820111220

Jim Sutliff

Euro Trades Lower -

 The Euro fell on news that Moody’s is considering a downgrade of European Union sovereign debt.  The inability to end the debt crisis is one factor in the Moody’s decision.  In currency trading, the Euro fell to $1.3184 which is the lowest mark since October 4th.  Also, Italian bonds declined in trading.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-11/euro-weakens-before-german-investor-confidence-data-italy-s-bill-auction.html

James Sutliff

Asia Markets Fall; Gold Rises -

Stock markets across Asia fell with Japan’s Nikkei dropping 1.6% and Korea’s Kospi Composite falling 1.9%.  New Zealand and Australian markets were also lower in trading.  European debt crisis concerns were the driving force in the markets.  The Euro fell to $1.3345 against the Dollar and gold rose $7.40 to $1,713.20 an ounce.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203413304577087082679599936.html?mod=WSJ_hp_LEFTWhatsNewsCollection

James Sutliff

Dow Jones Falls Again-

The Dow Jones Industrial Average fell more than 200 points in light trading on Wednesday.  The drop marked the sixth straight day that the Dow Jones posted a loss.  European debt concerns and weak production numbers forced prices lower.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/24/us-markets-stocks-idUSTRE7AA3VY20111124

Jim Sutliff

Fed Economists: Europe Could Trigger Recession -

A paper released by the Federal Reserve Bank of San Francisco indicates that the crisis in Europe could trigger a 2012 recession in America.  According to the paper, the chances of a recession in the first six months of 2012 have increased to 50%.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-14/fed-economists-say-odds-of-2012-u-s-recession-exceed-50-on-europe-crisis.html

Jim Sutliff

Smaller Euro Zone -

The Euro zone debt crisis continues to spread and yields on Italian debt broke the 7% mark today.  As a result, the Dow Jones Industrial Average fell almost 400 points in trading on Wednesday.  Speculation of a smaller Euro zone with deeper integration has increased over the last week.  In a recent speech, French President Nicholas Sarkozy mentioned a two-speed Euro zone which would be smaller than the current European Union.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/09/us-eurozone-future-sarkozy-idUSTRE7A85VV20111109

James Sutliff

Economic News Sends Gold Higher -

Gold broke the $1,760 an ounce mark in trading this week.  The precious metal rose on the possibility of slower domestic economic growth and another round of monetary stimulus.  Recently, Federal Reserve Chairman Ben Bernanke indicated that additional monetary stimulus may be in the works to lower unemployment.  The lingering European debt crisis is also increasing demand for gold.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-11-04/gold-traders-more-bullish-as-debt-crisis-u-s-economy-spur-bets-on-gains.html

James Sutliff

Greek Referendum Sends Stocks Lower -

The Dow Jones started to rebound after falling more than 300 points.  Stocks fell after Greek Prime Minister George Papandreou called for a referendum on the European Union bailout plan.  Currently, the Dow Jones is down slighlty less than 200 points in afternoon trading.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/11/01/us-markets-stocks-idUSTRE7A01NM20111101

Jim Sutliff

Euro & Gold Decline -

The Euro declined in trading after a spokesman for German Chancellor Angela Merkel indicated that the debt crisis would not be resolved in the next few weeks.  The news also sent crude oil and gold prices lower in trading on Monday.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/BT-CO-20111017-711244.html

James Sutliff

Greece Missing Deficit Target -

A draft budget sent to the parliament indicates that Greece will miss deficit targets set in the bailout program.  The budget news sent stocks lower and raised concerns for euro zone debt.  The Euro may come under pressure in the next few weeks as traders seek safer investments.  

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/10/03/us-eurozone-idUSTRE79211720111003

Jim Sutliff

Stocks Finish Quarter Down -

Stocks fell on the last day of trading for the quarter and the Dow closed 240 points down.  The Standard & Poor’s 500 index posted the largest quarterly drop since December 2008.  Conerns relating to the global economy continue to weigh on stock prices.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-09-30/u-s-stock-futures-decline-on-concern-worldwide-economic-growth-is-slowing.html

James Sutliff

GSCI Index Falls -

Commodities continued to drop and the Standard & Poor’s GSCI Index hit a 9 month low.  In afternoon trading, the GSCI Index fell to 594.12 which is the lowest level since early December 2009.  Metals were hit hard with silver, gold, copper, and nickel all falling.  Gold was trading below $1,700 an ounce and was down almost 5%.  Crude oil also declined and fell to $77.55 a barrel before rebounding to just under $80.  Global recessionary concerns are weighing on investors as well as the European debt crisis.   

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-09-23/commodities-poised-for-worst-week-in-4-months.html

Jim Sutliff

Federal Reserve Set To Purchase Debt -

The Federal Reserve announced that it would sell $400 billion of short term debt and purchase longer term bonds with the funds.  In addition, the Federal Reserve stated that there were significant downside risks to the economic outlook.  The warning sent stocks lower with the S & P 500 closing down 3% for the trading day.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/09/21/us-usa-fed-idUSTRE78J3HB20110921

James Sutliff