Market Recap: Monday Drag; Stocks Finish Flat
Stocks didn't have much to rally on today. Markets end flat.
The equity markets were weak for much of the day with economic data weighing on investors. The Institute for Supply Management's Factory Index fell to 48.3 from 50.7. Although the figure was better than expectations of 48.0, it still marked a contractionary environment as readings under 50 show a decline. Further, construction spending on a month-over-month basis declined -1.7% vs. expectations of -0.7%. For more analysis, read Professor Kevin Depew's Five Things You Need To Know.
Financial stocks finished mostly in the red after receiving more analyst downgrades and tech shares weren't particularly pleasing to the bulls either. Toddo mentioned key notables on the Buzz.
"We always talk about how you can learn a lot just by watching," said Toddo. "My eyes… were spying heavy financials and struggling beta. There's a rule of thumb that says when Goldman (GS) and Google (GOOG) are pointing the same way, the tape has a tendency to follow. That, along with the tenor outside energy and metals, was cause for pause and remains a principal point of concern."
GS closed -2.68% to $165.08. Google fell -3.1% to $456.50. Other notables included Apple (AAPL) closing -2.7% to $121.73. Research In Motion (RIMM) fell -3.5% to $100.15, and Baidu (BIDU) lost -4.5% to $240.01. Read Toddo's Random Thoughts.
Housing stocks performed poorly on the day as well. Topping headlines were predictions by Freddie Mac (FRE) that mortgage rates would plunge to its lowest levels in 45 years. But Professor Jeff Macke noted the sentiment in one area of the country, "The general vibe in Miami was one of concern, if not outright gloom, regarding real estate. Residential, commercial, collateralized; it all feels like a story still unwinding in a negative way (as opposed to "bottoming") in South Florida. The easiest comparable was the feeling of being in San Francisco when the tech bubble burst, when every potential light at the end of the tunnel seemed more like an oncoming train." Notable decliners included Lennar (LEN) dropping -10% to $16.73. Meritage Homes (MTH) falling -5.02% to $14.38, Pulte Homes (PHM) falling -7% to $12.60, and Hovnanian (HOV) losing -7.5% to $8.43. Read Professor Macke's Miami Rockin' But Reeling.
In commodities, gold started off the month of March much the same way it has performed this year. Gold futures moved higher adding +11.5 points to 986.50. Crude oil added +0.69 to 102.50. Silver gained +0.477 to 20.285, and copper added +7.30 to 392.50. Check out Professor Lance Lewis' article Gold Breaks Out Big Guns.
The dollar index continued to decline losing -0.27 to 73.694.
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: CSCO, GFI, BIDU, AAPL, CLF, FTI, GPS, WMT, GLD, USO, MICC, IYT, GOOG
Some bearish trade or investment ideas: TGT, MCO, MA, AEM, F, GM
Enjoy the rest of the night, Minyans! See you in the morning!
GET THESE INSIGHTS AND MORE IN REAL-TIME. CALL 212-991-9357 FOR A 14-DAY FREE TRIAL TO THE BUZZ & BANTER OR CLICK BELOW.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter