David Moenning's Daily State of the Markets: 10/14
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The Diagnosis: C.U.S.
Although stocks recovered the early losses yesterday, the diagnosis is now official. The stock market is suffering from Chronic Uncertainty Syndrome. Yesterday�s report on Import Prices, which showed the highest gain for prices in 15 years, confirmed that the Fed will remain vigilant and kept traders in a bearish mood. Stocks probed new five-month lows but recovered back to almost breakeven later on lower oil prices and a bounce in the semis.
This morning brings a brighter outlook as the core CPI came in lower than expected. While the headline CPI was actually higher than anticipated, remember that the Fed can�t do much about energy costs, thus it is the core rate that counts. In addition, the Retail Sales numbers were better than expected once you strip out auto sales. The combination has traders thinking that inflation might not be all that bad and that the economy just might be able to withstand the additional rate hikes on the horizon.
And although it looks like a strong open for the market, the question of the day is if the bulls will be able to rally the troops for anything more than a reflex bounce today.
Stocks "In Play" This Morning:
AMD/INTC � DigiTimes reports AMD beat INTC in retail desktop sales for the first time ever
GE � Reported in-line earnings and increased share repurchase program
EMC � Wall Street Journal profiles growing need for computer storage
NEM/PDG � Morgan Stanley upgrades global mining stocks
UNH � Reports $0.64 vs. $0.63
GPS � Downgraded at AG Edwards
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: none
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
Although stocks recovered the early losses yesterday, the diagnosis is now official. The stock market is suffering from Chronic Uncertainty Syndrome. Yesterday�s report on Import Prices, which showed the highest gain for prices in 15 years, confirmed that the Fed will remain vigilant and kept traders in a bearish mood. Stocks probed new five-month lows but recovered back to almost breakeven later on lower oil prices and a bounce in the semis.
This morning brings a brighter outlook as the core CPI came in lower than expected. While the headline CPI was actually higher than anticipated, remember that the Fed can�t do much about energy costs, thus it is the core rate that counts. In addition, the Retail Sales numbers were better than expected once you strip out auto sales. The combination has traders thinking that inflation might not be all that bad and that the economy just might be able to withstand the additional rate hikes on the horizon.
And although it looks like a strong open for the market, the question of the day is if the bulls will be able to rally the troops for anything more than a reflex bounce today.
Stocks "In Play" This Morning:
AMD/INTC � DigiTimes reports AMD beat INTC in retail desktop sales for the first time ever
GE � Reported in-line earnings and increased share repurchase program
EMC � Wall Street Journal profiles growing need for computer storage
NEM/PDG � Morgan Stanley upgrades global mining stocks
UNH � Reports $0.64 vs. $0.63
GPS � Downgraded at AG Edwards
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: none
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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