Market Recap

The SPX was able to retrace some of last week’s losses as it currently idles around 1400. Better than expected economic data namely GDP and durable goods caused the dollar to bounce as steam was let out of the commodity space. However, as said before, the downward trend in the USD remains in tact and until broken I feel commodity sell-offs should be bought.

The news from Keycorp (KEY) this week is reason to remain extremely cautious as risk levels remain high. On a closing basis, the SPX must overcome 1440 to change the major downtrend which has been in place for the past eight months. This scenario seems unlikely in the near future given the poor technical condition of the financial complex.

The Four Sisters Performance



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Top Headlines

Commerce Department posted an improved revision to its 1st quarter GDP report of 0.9%, up from 0.6% first reported last month. The better than expected GDP figure sent treasury yields higher as the yield on the 10yr note touched a five month high. (5/29)

Oil prices fell this week on the heels of a stronger dollar. Despite what appeared to be bullish EIA data, the decline in inventory levels was blamed on unloading delays in the Gulf of Mexico terminals. (5/29)

Durable goods for the month of April slipped 0.5%, better than the forecasted decline Wall Street was expecting. Excluding transportation, orders rose 2.5%, the largest spike in nine months. (5/28)

Earnings Snapshot

MasterCard (MA) delighted investors Thursday after raising long-term growth targets. The credit card giant expects 12%-15% annual revenue growth over the next three years. (5/29)

Mining equipment maker Joy Global (JOYG) impressed the Street after delivering a very favorable outlook over the three to five years. (5/29)

Regional banks were under pressure after the Ohio-based Keycorp (KEY) doubled its loan loss provision. Shares were off 10%. (5/28)

Market Movers: Winners & Sinners