STOCK MARKET WATCH, WEDNESDAY AUGUST 13.....(#1)

Fed Speak, Again

As the trading day progressed all market participants, both bond and stock traders, sat on their hands in anticipation of comments from the Federal Reserve. Concerns were not necessarily in anticipation of an actual rate change, but more with what the Fed would say about the economy. Over the past several weeks it has been well documented that the Fed has been openly operating as the “Federal Open Mouth Committee” and using the power of its word to direct markets.

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One should also realize that the consumer will soon be, if not already, unable to support our economy as interest rates climb. Consumers have spent more and more of their income and savings in the past several years, that now more than ever consumer debt is the method for supporting spending habits. Since 1998, total consumer debt, not including home mortgage debt, has increased some $44 billion. That’s a 33% increase in five years. Mortgage debt has more than kept pace. Mortgage debt has increased about 60% during that same five-year period. Simple economics tells us that servicing the debt will continue to eat away at the consumers buying power as their balances grow with the increasing interest rates.

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NEW YORK (Reuters) - Stocks are set for a lackluster start on Wednesday after surging a day earlier, as investors await a report before the opening bell that will show how consumer spending fared in July.

"It looks like a flat start," said Peter Cardillo, director of research at Global Partners Securities. "The market reacted positively after the Fed announcement but after such a strong rise yesterday, I suspect we will have light volume today. The market will be eyeing retail sales. That will give us insight as to the mood of the consumer as far as spending is concerned."

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Wall Street will receive a stream of economic data over the remainder of the week, including the July retail sales report before the opening bell.

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LONDON (Reuters) - The dollar hit 1-1/2 week highs against the euro and Swiss franc on Wednesday as the Federal Reserve (news - web sites)'s signal it would keep interest rates low for some time to come fanned hopes of a U.S. recovery.

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Maeve, one of the faithful regulars here, departs with Mr. Maeve for Ireland today. Over the next week-or-so her absence will allow ample opportunity for anyone who posts infrequently to step up a bit. Please jump right in with updates and info.

Today my son starts part-time daycare. So I will be here a scant bit in the mornings then a little bit in the afternoons. I will update as time with my son and my new work schedule allow.

:donut: :donut: :donut:

Kudos in advance for your help!

Ozymandius

Well, if the man-child starts day-care today that answers my question on his recovery. Glad to hear it. I will miss Maeve terribly as we all will. On the upside though I look forward to hearing all about the Emerald Isle!

So flat open for stocks today eh? heh heh Well if volume is as light as yesterday it won't take much to make it look pretty and shiney. ;-) Like yesterday. No news form Fed, slight words of caution and VOILA!! Huge rally. :crazy: No, no manipulation here, just good, clean fun!

We will find out soon if folks could afford to shop anywhere but Wally World.

I've got digital cable coming in today and, here's the big fun, I'll be herding kittens to take 'em in for shots this afternoon. I know what you are thinking but it's my life and you can't have it. ;-)

BTW, loved the wrap-up as usual.

Julie

Congrats on joining the broadband community.

Herding kittens eh? My sympathies.

I will check back later as long as time allows.

Oz

U.S. stocks look to build on gains after upbeat data
Wednesday August 13, 8:41 am ET
By Julie Rannazzisi

NEW YORK (CBS.MW) -- The U.S. stock indexes looked to head higher at the open Wednesday following an upbeat reading on retail sales.
July retail sales climbed 1.4 percent overall and 0.8 percent when excluding autos, which compared favorably to the expected 0.9 percent overall rise and the projected 0.5 percent increase excluding autos. Adding to the positive momentum was an upward revision to the June retail sales figures.

In other news, July import prices rose 0.5 percent while export prices shaved 0.1 percent. Still ahead is the release of June business inventories, which economists expect to inch down 0.1 percent.

Futures extended gains after the release of the data, with the September S&P 500 contract up 2.10 points, or 0.2 percent, and the Nasdaq 100 contract gaining 4.50 point, or 0.3 percent.

http://biz.yahoo.com/cbsm-top/030813/f4f6befd90fa152076e353bf4ecb4e29_1.html

The part I love the most is the next paragraph where they talk about Applied Materials. If you excluded charges that they had to pay, well then they beat expectations. They actually showed a loss of .02 a share but that is kinda ugly. I know!! Let's deduct that great big expense they paid.......yep, if ya do it that way AM beat the Street's expectations! Hooray!! We have a winner!!

This is getting more and more ridiculous.

Julie

Looks like things are going down early

Dow 9,255.23 -54.83 (-0.59%)
Nasdaq 1,683.04 -3.97 (-0.24%)
S&P 500 984.10 -6.25 (-0.63%)
10-Yr Bond 4.538% +0.181

that was my advice to 14 yr. old daughter an hour ago.

11:42 and we are here:


Dow 9,267.84 -42.22 (-0.45%)
Nasdaq 1,686.79 -0.22 (-0.01%)
S&P 500 985.20 -5.15 (-0.52%)
10-Yr Bond 4.544% +0.187


Julie

Hi guys!

Sorry I didn't post a reading yesterday. Our computer picked up a virus that didn't allow us to go online. Everything seems to be okay now, though. I'll try to post updates on the market today from work, depending on how closely I'm monitored by authority persons. :-)

Anyway, today's reading is NOURISHING (again) changing to DECLINE.
Listen to the changing line from Nourishing, "Although you are able to properly nourish yourself in this situation, you rely upon inappropriate methods or persons to fulfill your needs. If this continues, it will lead to evil."

My take on this is that Ching is saying that our economy that depends on consumer debt is not "nourishing" itself in the proper fashion. Eventually this house of cards will fall.

I predict a down day---what else could I predict with Ching saying DECLINE?

There is no doubt.

12:35 and the DOW seems comfy in the -50 something range for a while now:


Dow 9,261.33 -48.73 (-0.52%)
Nasdaq 1,684.51 -2.50 (-0.15%)
S&P 500 984.25 -6.10 (-0.62%)
10-Yr Bond 4.536% +0.179



Julie

I do declare!


Dow 9,286.68 -23.38 (-0.25%)
Nasdaq 1,690.72 +3.71 (+0.22%)
S&P 500 986.91 -3.44 (-0.35%)
10-Yr Bond 4.526% +0.169


1:42 and getting sunnier as we speak!

Julie

;-)

Looks like it's still kind of muddling along in the solid negatives

Dow 9,273.64 -36.42 (-0.39%)
Nasdaq 1,688.54 +1.53 (+0.09%)
S&P 500 985.47 -4.88 (-0.49%)
10-Yr Bond 4.530% +0.173

P.S. :think: I gotta take the time to package some HTML to get my listing to look at pretty as everyone else's. I need better columns, and the Red text for negatives especially is telling at quick glance. But I can only post between meetings at work. Hope it helps!

:toast:

And it only took roughly 2 years since I registered! LOL! :spank:

Too much good stuff to read around here and not enough time to make thoughtful posts makes me a serious lurker, I guess.

Glad you're joining in the Stock Watch Fun!! Congratulations on 200 posts, and in no time flat you'll have a couple thousand more. :-)

DOW 9,251.03 -59.03 (-0.63%)
Nasdaq 1,686.84 -0.17 (-0.01%)
S&P 500 982.78 -7.57 (-0.76%)
10-Yr Bond 4.560% +0.203

Things look a bit grim again. I guess Wal-Mart making lots of money doesn't have quite the kick it used to. Oh and tough day in Treasuries (again).

At least it's almost over....

Julie

DJIA 9,245.78 -64.28 (-0.69%)
NASDAQ 1,683.44 -3.57 (-0.21%)
S&P 500 982.05 -8.30 (-0.84%)
10yr Note 4.43% (0.0%)


I also didn't expect my son to take a 2 hour nap.

Good thing you're such a go-with-the-flow kinda guy, eh Ozy? First day of day care for the man-child? Probably tuckered him out. :-) They are so cherubic when they sleep.

Less than 10 minutes left of the (controlled) blood-letting:


Dow 9,253.55 -56.51 (-0.61%)
Nasdaq 1,684.55 -2.46 (-0.15%)
S&P 500 982.76 -7.59 (-0.77%)
10-Yr Bond 4.560% +0.203


Ah! My achin' Treasuries!!! ;-)

Julie

a bit but not much.

Dow 9,271.76 -38.30 (-0.41%)
Nasdaq 1,686.59 -0.42 (-0.02%)
S&P 500 984.03 -6.32 (-0.64%)
10-Yr Bond 4.560% +0.203

Tomorrow should be just as much fun! *yawn*

Julie

Just as that boy is tuckered out - so am I. I took him on a walk around 2 and he fell quickly asleep. He is still down.

Well, thanks for all your help keeping the tallies fresh. I'll be back in the morning to kick things off.