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Momentum Stocks Have a Day in the Sun
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Momentum stocks stabilized on Wednesday while the Dow Jones Industrial Average (INDEXDJX:.DJI) stalled.

In recent weeks, the primary stock market trend was significant weakness in risky sectors like social media and biotech, while lower-beta groups like utilities marched up steadily.

However, today we started seeing signs that the ugly selling in momentum stocks may be coming to an end.

The closely watched iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) finished in the red and utilities rose again, but the Global X Social Media ETF (NASDAQ:SOCL) rose an impressive 2.4%.

Additionally, hot tech names like FireEye (NASDAQ:FEYE), Splunk (NASDAQ:SPLK), and Netflix (NASDAQ:NFLX) were all solidly in the green following huge declines in March and early April.

We also saw significant outperformance in the Russell 2000 (INDEXRUSSELL:RUT) and Nasdaq Composite (INDEXNASDAQ:.IXIC), which both rose 0.8%.

By comparison, the Dow was up just 0.1%. 

Emerging markets, which have been red hot as of late, were generally green, but the iShares MSCI Brazil Index ETF (NYSEARCA:EWZ) fell. That ETF had risen 25% in a virtual straight  line since March 14, so it was due for some profit-taking.

In currencies, the USD/JPY fell sharply after Bank of Japan Governor Haruhiko Kuroda announced that the bank was not considering additional monetary easing, as Japan is on track to meet its 2% inflation goal. 

And after the close, aluminum giant Alcoa (NYSE:AA) reported first-quarter earnings that beat Wall Street's expectations.

Tomorrow's Financial Outlook

On the domestic data front, we'll see MBA Mortgage Applications, Wholesale Inventories, and, most importantly, the FOMC minutes from last month's meeting.

Overseas, Australian Consumer Confidence and the German and British Trade Balances will be reported.

In earnings, Constellation Brands (NYSE:STZ) and Bed, Bath & Beyond (NASDAQ:BBBY), will report, but neither is likely to be market-moving.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.

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.

Momentum Stocks Have a Day in the Sun
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Momentum stocks stabilized on Wednesday while the Dow Jones Industrial Average (INDEXDJX:.DJI) stalled.

In recent weeks, the primary stock market trend was significant weakness in risky sectors like social media and biotech, while lower-beta groups like utilities marched up steadily.

However, today we started seeing signs that the ugly selling in momentum stocks may be coming to an end.

The closely watched iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) finished in the red and utilities rose again, but the Global X Social Media ETF (NASDAQ:SOCL) rose an impressive 2.4%.

Additionally, hot tech names like FireEye (NASDAQ:FEYE), Splunk (NASDAQ:SPLK), and Netflix (NASDAQ:NFLX) were all solidly in the green following huge declines in March and early April.

We also saw significant outperformance in the Russell 2000 (INDEXRUSSELL:RUT) and Nasdaq Composite (INDEXNASDAQ:.IXIC), which both rose 0.8%.

By comparison, the Dow was up just 0.1%. 

Emerging markets, which have been red hot as of late, were generally green, but the iShares MSCI Brazil Index ETF (NYSEARCA:EWZ) fell. That ETF had risen 25% in a virtual straight  line since March 14, so it was due for some profit-taking.

In currencies, the USD/JPY fell sharply after Bank of Japan Governor Haruhiko Kuroda announced that the bank was not considering additional monetary easing, as Japan is on track to meet its 2% inflation goal. 

And after the close, aluminum giant Alcoa (NYSE:AA) reported first-quarter earnings that beat Wall Street's expectations.

Tomorrow's Financial Outlook

On the domestic data front, we'll see MBA Mortgage Applications, Wholesale Inventories, and, most importantly, the FOMC minutes from last month's meeting.

Overseas, Australian Consumer Confidence and the German and British Trade Balances will be reported.

In earnings, Constellation Brands (NYSE:STZ) and Bed, Bath & Beyond (NASDAQ:BBBY), will report, but neither is likely to be market-moving.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

Momentum Stocks Have a Day in the Sun
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Momentum stocks stabilized on Wednesday while the Dow Jones Industrial Average (INDEXDJX:.DJI) stalled.

In recent weeks, the primary stock market trend was significant weakness in risky sectors like social media and biotech, while lower-beta groups like utilities marched up steadily.

However, today we started seeing signs that the ugly selling in momentum stocks may be coming to an end.

The closely watched iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) finished in the red and utilities rose again, but the Global X Social Media ETF (NASDAQ:SOCL) rose an impressive 2.4%.

Additionally, hot tech names like FireEye (NASDAQ:FEYE), Splunk (NASDAQ:SPLK), and Netflix (NASDAQ:NFLX) were all solidly in the green following huge declines in March and early April.

We also saw significant outperformance in the Russell 2000 (INDEXRUSSELL:RUT) and Nasdaq Composite (INDEXNASDAQ:.IXIC), which both rose 0.8%.

By comparison, the Dow was up just 0.1%. 

Emerging markets, which have been red hot as of late, were generally green, but the iShares MSCI Brazil Index ETF (NYSEARCA:EWZ) fell. That ETF had risen 25% in a virtual straight  line since March 14, so it was due for some profit-taking.

In currencies, the USD/JPY fell sharply after Bank of Japan Governor Haruhiko Kuroda announced that the bank was not considering additional monetary easing, as Japan is on track to meet its 2% inflation goal. 

And after the close, aluminum giant Alcoa (NYSE:AA) reported first-quarter earnings that beat Wall Street's expectations.

Tomorrow's Financial Outlook

On the domestic data front, we'll see MBA Mortgage Applications, Wholesale Inventories, and, most importantly, the FOMC minutes from last month's meeting.

Overseas, Australian Consumer Confidence and the German and British Trade Balances will be reported.

In earnings, Constellation Brands (NYSE:STZ) and Bed, Bath & Beyond (NASDAQ:BBBY), will report, but neither is likely to be market-moving.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

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.

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