Stock Market Commentary
I suppose we should not look a gift horse in the mouth nor a relief rally with pathetic volume for that matter. All of the major equity indexes (see below) made new three-day highs and are showing reversal signs from negative momentum. With not much positive economic news or other events to drive the market, the bears are resting while bulls are beginning to kick up some dust and challenge some of the stock markets 52 week highs. As mentioned yesterday, the trends for equities remains upward and the most recent downward move is proving to have been only a correction in a overbought bull market.
Keep Hillbent for The Market Direction…
Daily Market Performance
|Index||LAST||Net Chg||% Chg|
|10-Year Treasury Note||2.41||-0.03||-1.23%|
|US Dollar Index||81.66||0.10||0.13%|
|U.S. Real Estate Index||285.19||3.26||1.16%|
|U.S. Home Construction Index||452.75||1.88||0.42%|
- Manufacturing: China’s Industrial Production for July-2014 increased to 9.0% vs. consensus @ 9.0% and previous month @ 9.2%.
- Manufacturing: Industrial Production for June-2014 in the European Union declined monthly by -0.3% vs. forecasts @ 0.4% and prior month @ -1.1%. On an annual basis, it remained unchanged @ 0.0% vs. forecasts @ 0.1% and previous year @ 0.5%.
- Real Estate: The MBA Purchase Applications for the week of Aug-8-2014 showed a softer demand for both purchases (-1% weekly and -10% annual) and refinancings (-4% weekly) of mortgages.
|MBA Purchase Applications||Prior||Actual|
|Composite Index – W/W Change||1.6 %||-2.7 %|
|Purchase Index – W/W Change||-1.0 %||-1.0 %|
|Refinance Index – W/W Change||4.0 %||-4.0 %|
- Consumer: Retail Sales for July-2014 were failed to meet consensus estimates for the 2nd consecutive month and contracted to 0.2% (unrevised) vs. prior month @ 0.5% (revised).
|Release Date||Actual (Revisions Updated)||Forecast|
- Business Conditions: Business Inventories for June-2014 matched consensus estimates @ 0.4% vs. prior month @ 0.5%.
- Energy: The EIA status for the week of August-8-2014 reported a 1.4mm bbl increase in crude oil inventories and that refineries are operating at 91.6% capacity, which is still relatively high.
|EIA Petroleum Status||Prior Wkly Chg||Actual Wkly Chg|
|Crude oil inventories||-1.8 M barrels||1.4 M barrels|
|Gasoline||-4.4 M barrels||-1.2 M barrels|
|Distillates||-1.8 M barrels||-2.4 M barrels|