Wednesday, November 06, 2013

Waiting On Friday's Jobs Report

The market spiked higher after the open this morning, but the gains have faded with the Nasdaq moving into the red and the S&P giving back much of its early gains.

The stock market continues to consolidate in a sideways fashion as we have noted several times in the last couple weeks.  The October jobs report had been delayed due to the govt shutdown, and will be released this Friday instead.  Whispers are that the number could be quite a bit weaker than recent reports.  It's possible that this is keeping investors playing things close to the vest until they get this important read on the labor market, which also influences the Fed.

Leading indicators rose 0.7% in September, following an equal rise in August.

The big earnings report folks are watching today is Tesla (TSLA), which is down -15% after beating estimates but showing fewer deliveries than the Street was looking for.

Tomorrow will see the IPO of Twitter which should provide a lot of excitement.  Hopefully the IPO will go off better than the Facebook (FB) debacle and will also prove to be priced better.

Asian markets ended mixed.  Overnight SHIBOR rates in China eased further, with the one-week rate falling to 3.87%.  Indonesian GDP rose 5.6% yr/yr (in-line with forecasts).

European markets are hovering in positive territory.  Eurozone retail sales declined -0.6%, worse than expected.  German factory orders rose 3.3%.  French and Italian services PMIs remained above 50 while Spain is still below the key expansion/contraction line at 49.6.

Oil prices are higher today near $94.50 and gold prices are also up a bit to $1315.

The 10-year yield is easing back to 2.65% after hitting 2.67% yesterday.  And the volatility index continues to hover in low territory just above the 13 level at 13.32.

Trading comment: Yesterday we added a couple names to our growth portfolios as many of these stocks continue to hold up well.  3D printing stocks have remained incredibly strong with DDD going almost parabolic yesterday.  We trimmed those positions a little while added a small position in a new name.  Biotech stocks have also been very strong, but look to be in a phase where we will see them take a breather and consolidate their recent rallies. 

KAM Advisors has long positions in DDD, FB


Post a Comment

<< Home