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Momentum Stocks Take a Beating as Investors Continue to Shed Risk
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Facebook (NASDAQ:FB) announced the acquisition of virtual-reality manufacturer Oculus for $2 billion, consisting of $400 million in cash and 23.1 million common shares. The stock was down 6.92% as investors voiced concerns over the lack of any usable product from the firm. Facebook has declined by 12.73% in the past week.

A multibillion-dollar order of S&P 500 (INDEXSP:.INX) puts shook the market in the afternoon, knocking off about 0.5% from the benchmark index. It ended up finishing down 0.70% as sellers appeared at the end of the session. Industrial- and material-sector stocks struggled today. A recent leader, bank stocks, lost 0.89% today.

Momentum and cyclical stocks took a beating today as investors continued to shed risk. We saw substantial weakness in small caps, financials, housing, biotechnology, and social media. There were only a few bright spots today, most notably non-biotech pharmaceutical stocks such as Merck (NYSE:MRK) and Pfizer (NYSE:PFE) and select emerging markets such as China and Russia.

The Treasury sold $35 billion of five-year notes today at a high yield of 1.716% that was met with large demand from domestic buyers. Primary dealers received the smallest percentage of the auction on record, according to Bloomberg.

Durable goods orders rose 2.2% in February, ahead of the 0.8% expected. The sizable jump was largely due to an increase in commercial and aircraft orders. The more closely followed component that removes transportation orders rose 0.3% against 0.2% expected. Negatively, the core capital goods orders fell -1.3% in the month, significantly worse than the +0.5% that had been expected.

Tomorrow's Financial Outlook

Tomorrow morning the final release of US fourth-quarter GDP is scheduled. Economists are expecting the quarterly annualized growth to 2.7% from the prior release of 2.4% due to a sharp contraction in the US capital account balance for the quarter, which was released last week. Also scheduled to be reported are last week's jobless claims and February pending home sales.

China will report industrial profits for the first two months of the year tomorrow. It was reported earlier this month that industrial production had grown 8.6% in China through February. The other report due to be released overnight is UK retail sales.

The only notable earnings reports scheduled for tomorrow are GameStop (NYSE:GME) and Conn's (NASDAQ:CONN).

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 Take a Beating as Investors Continue to Shed Risk
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Facebook (NASDAQ:FB) announced the acquisition of virtual-reality manufacturer Oculus for $2 billion, consisting of $400 million in cash and 23.1 million common shares. The stock was down 6.92% as investors voiced concerns over the lack of any usable product from the firm. Facebook has declined by 12.73% in the past week.

A multibillion-dollar order of S&P 500 (INDEXSP:.INX) puts shook the market in the afternoon, knocking off about 0.5% from the benchmark index. It ended up finishing down 0.70% as sellers appeared at the end of the session. Industrial- and material-sector stocks struggled today. A recent leader, bank stocks, lost 0.89% today.

Momentum and cyclical stocks took a beating today as investors continued to shed risk. We saw substantial weakness in small caps, financials, housing, biotechnology, and social media. There were only a few bright spots today, most notably non-biotech pharmaceutical stocks such as Merck (NYSE:MRK) and Pfizer (NYSE:PFE) and select emerging markets such as China and Russia.

The Treasury sold $35 billion of five-year notes today at a high yield of 1.716% that was met with large demand from domestic buyers. Primary dealers received the smallest percentage of the auction on record, according to Bloomberg.

Durable goods orders rose 2.2% in February, ahead of the 0.8% expected. The sizable jump was largely due to an increase in commercial and aircraft orders. The more closely followed component that removes transportation orders rose 0.3% against 0.2% expected. Negatively, the core capital goods orders fell -1.3% in the month, significantly worse than the +0.5% that had been expected.

Tomorrow's Financial Outlook

Tomorrow morning the final release of US fourth-quarter GDP is scheduled. Economists are expecting the quarterly annualized growth to 2.7% from the prior release of 2.4% due to a sharp contraction in the US capital account balance for the quarter, which was released last week. Also scheduled to be reported are last week's jobless claims and February pending home sales.

China will report industrial profits for the first two months of the year tomorrow. It was reported earlier this month that industrial production had grown 8.6% in China through February. The other report due to be released overnight is UK retail sales.

The only notable earnings reports scheduled for tomorrow are GameStop (NYSE:GME) and Conn's (NASDAQ:CONN).

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.

More From Minyanville Staff
Momentum Stocks Take a Beating as Investors Continue to Shed Risk
Today's financial recap and tomorrow's financial outlook.
Minyanville Staff    

Facebook (NASDAQ:FB) announced the acquisition of virtual-reality manufacturer Oculus for $2 billion, consisting of $400 million in cash and 23.1 million common shares. The stock was down 6.92% as investors voiced concerns over the lack of any usable product from the firm. Facebook has declined by 12.73% in the past week.

A multibillion-dollar order of S&P 500 (INDEXSP:.INX) puts shook the market in the afternoon, knocking off about 0.5% from the benchmark index. It ended up finishing down 0.70% as sellers appeared at the end of the session. Industrial- and material-sector stocks struggled today. A recent leader, bank stocks, lost 0.89% today.

Momentum and cyclical stocks took a beating today as investors continued to shed risk. We saw substantial weakness in small caps, financials, housing, biotechnology, and social media. There were only a few bright spots today, most notably non-biotech pharmaceutical stocks such as Merck (NYSE:MRK) and Pfizer (NYSE:PFE) and select emerging markets such as China and Russia.

The Treasury sold $35 billion of five-year notes today at a high yield of 1.716% that was met with large demand from domestic buyers. Primary dealers received the smallest percentage of the auction on record, according to Bloomberg.

Durable goods orders rose 2.2% in February, ahead of the 0.8% expected. The sizable jump was largely due to an increase in commercial and aircraft orders. The more closely followed component that removes transportation orders rose 0.3% against 0.2% expected. Negatively, the core capital goods orders fell -1.3% in the month, significantly worse than the +0.5% that had been expected.

Tomorrow's Financial Outlook

Tomorrow morning the final release of US fourth-quarter GDP is scheduled. Economists are expecting the quarterly annualized growth to 2.7% from the prior release of 2.4% due to a sharp contraction in the US capital account balance for the quarter, which was released last week. Also scheduled to be reported are last week's jobless claims and February pending home sales.

China will report industrial profits for the first two months of the year tomorrow. It was reported earlier this month that industrial production had grown 8.6% in China through February. The other report due to be released overnight is UK retail sales.

The only notable earnings reports scheduled for tomorrow are GameStop (NYSE:GME) and Conn's (NASDAQ:CONN).

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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