Written by Gary
Closing Market Commentary For 08-11-2014
Gary is out of the office. This report is presented courtesy of input from our content partner Investing.com.
U.S. stocks ended higher on Monday, extending the rally from Friday as investors hoped that Russia’s move to send humanitarian aid to Ukraine would ease tensions between the two countries. The S&P 500 closed up 0.29% and the Dow Inductrials were up 0.10%, both near the day’s lows after trading in a narrow range all day. The NASDAQ Composite closed up 0.70% near the mid-range for the day.
From Reuters via Investing.com:
Earlier in the day, NATO chief Anders Fogh Rasmussen warned of a “high probability” that Russia, using the guise of a humanitarian mission, could intervene militarily in Ukraine.
Ukraine has also said that, contrary to Russian reports of de-escalating, Russia has massed 45,000 troops on its border.
Investors did not seem fazed by the reports. The Market Vectors Russia Exchange-Traded Fund (P:RSX), which gives investors exposure to publicly traded companies based in Russia, gained 1.43 percent.
“It seems like U.S. investors who are taking a risk on Russian equities don’t deem NATO’s statement as a legitimate concern,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
Investors with money in Russian equities seem to be “taking Russia’s actions at face value, and not interpreting it as a cover for military action,” he said.
Gains were broad, with eight of the S&P’s 10 primary sector indexes ending higher for the day. Consumer staples shares posted the highest increases as the sector’s index <.SPCOMS> gained 0.8 percent, while energy and utilities shares dragged.
Stocks also climbed after the United States continued air strikes against Islamic State militants in northern Iraq over the weekend and as Israeli and Palestinian negotiators resumed indirect talks mediated by Egypt on Monday.
The Dow Jones industrial average (DJI:Dow 30) rose 16.05 points, or 0.10 percent, to end at 16,569.98, still below its close at the end of 2013. The S&P 500 (SPX:S&P 500) gained 5.33 points, or 0.28 percent, to finish at 1,936.92. The Nasdaq Composite (IXIC:NASDAQ Composite) added 30.43 points, or 0.70 percent, to close at 4,401.33.
Shares of Kinder Morgan Inc (N:KMI), the biggest U.S. pipeline company, jumped 9 percent to $39.37. The stock was the S&P 500’s biggest percentage gainer in Monday’s session after the company said on Sunday that it would put all its publicly traded units under one roof in a $70 billion deal. Kinder Morgan ranked No. 3 among S&P 500 components in contributing to the benchmark index’s gain for the day, in terms of index points
The shares of the company’s other units – Kinder Morgan Partners (N:KMP), Kinder Morgan Management (N:KMR) and El Paso Pipeline Partners (N:EPB) – also rallied. The JP Morgan Alerian MLP exchange-traded note (P:AMJ), which tracks energy master limited partnerships, rose 3.6 percent.
Investors snapped up shares of companies developing potential treatments for the often fatal Ebola virus disease amid growing calls to expedite research funding and drug approvals.
U.S.-listed shares of Canada-based Tekmira Pharmaceuticals Corp (O:TKMR) soared 15.0 percent to $23.80. The stock of U.S.-based Sarepta Therapeutics Inc (O:SRPT) gained 7.4 percent to $22.66.
Priceline Group Inc (O:PCLN) shares rose 2.2 percent to $1,309.28 after the online travel agency reported quarterly revenue rose 26 percent. More than 2 million shares were traded, almost triple the 50-day moving average volume of 724,115 shares.
The stock of Chiquita Brands International Inc (N:CQB) surged 30.2 percent to $13.10 in its biggest one-day advance since its trading debut in 2002. Juice maker Cutrale Group and Brazilian investment firm Safra Group offered to buy Chiquita for $13 per share in cash.
About 4.7 billion shares traded on all U.S. platforms, according to BATS exchange data, compared with the five-day average of 6.1 billion
Investing.com members’ sentiments are 43 % bearish and when it switches over to but, as it did on Tuesday 8-5, watch for the market bottom to fall out some are saying as the markets usually go against ‘Sheeple’ buying high and selling low.
Investors Intelligence sets the breath at 57.65 % bullish with the status at Bear Confirmed. (Chart Here )
StockChart.com NYSE Bullish Percent Index ($BPNYA) is at 62.33. (Chart Here) Below support, looking bad.
StockChart.com S&P 500 Bullish Percent Index ($BPSPX) is at 70.80. (Chart Here) Below support, but slowing.
The Market Is Overpriced But The Correction Will Likely Be Shallow
StockChart.com Overbought / Oversold Index ($NYMO) is at 6.06. (Chart Here) (Need to type in $NYMO) Sharp bounce back from -89 (deeply oversold) a week ago Friday. Now neutral.
StockChart.com Consumer Discretionary ETF (XLY) is at 66.66. (Chart Here)
Chris Ciovacco says, “As long as the consumer discretionary ETF (NYSEARCA:XLY) holds above 67.06, all things being equal, it is a good sign for stocks and the U.S. economy.” (Actually the support looks to be in the 66.88 range) We have entered an area that concerns me should the XLY drops any further. This chart clearly shows that dropping below 65.50 should be of a great concern to bullish investors. Today’s numbers are bullish in that the support 65.35 has continued to hold.
The markets are still susceptible to climbing on ‘Bernankellen’ vapor, use caution!
“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy only when others are fearful.” – Warren Buffett
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The DOW at 4:00 is at 16570 up 16 or 0.10%.
The SP500 is at 1937 up 5 or o.28%.
SPY is at 193.79 up 0.55 or 0.29%.x
The $RUT is at 1142 up 11 or 0.94%.
NASDAQ is at 4401 up 30 or 0.70%.
NASDAQ 100 is at 1888 up 30 or 0.78%.
$VIX ‘Fear Index’ is at 14.23 down 0.34 or -2.16%. Bullish Movement
(Follow Real Time Market Averages at end of this article)
The longer trend is up, the past month’s trend is positive, the 5 of the past 6 sessions have been negative and the current bias is positive.
Crude Rebound Off of 3-month Lows
WTI oil is trading between 98.01 (resistance) and 97.78 (support) today. The session bias is negative and is currently trading down at 97.89.
Brent Crude is trading between 106.85 (resistance) and 104.66 (support) today. The session bias is negative and is currently trading down at 104.75.
Gold traded between 1312.40 earlier to 1308.70 and is currently trading up at 1309.90. The current intra-session trend is down and sideways.
Dr. Copper is at 3.176 in a very narrow trading range day (3.175 – 3.180).
The US dollar is trading between 81.55 and 81.47 and is currently trading down at 81.55, the bias is currently up with little volatilty second half of the day.
Real Time Market Numbers
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Written by Gary
