Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

Posts Tagged ‘Stock Market News’

Markets to End Year Higher,
but Down from 2009 Gains

By for Profit Confidential

Markets will end up higher this year, but well off the gains of 2009.

On the plus, the S&P 500, NASDAQ and Russell 2000 are holding above their previous chart highs, while the DOW is off 0.05% below its previous chart high. Failure to hold above the previous highs could drive selling in stocks to a sideways channel.

Transports, Then Financials, Then Technology—It’s the Leadership
the Stock Market Needs

By for Profit Confidential

It’s looking like the main stock market averages are hitting key resistance levels as they continue with their upward bias. Trading volume has been mediocre, but, then again, it’s been that way since the financial crisis. What the stock market really needs is a good catalyst—a positive catalyst that can help investors take their buying to the next level.

The Worst Performing
Investment of 2011 Will Be…
Welcome to My 2011 Interest
Rate Forecast Issue

By for Profit Confidential

If there is one investment to avoid in 2011, it will be bonds. Why? Simply because interest rates are headed higher in 2011.

No, we won’t see a spike in short-term interest rates. The Fed will not let that happen. But the Fed cannot control long-term interest rates.

Sure Things and Growth Picks in Retail

By for Profit Confidential

If you need sure-bet plays in retail, you have to stick with Wal-Mart Stores, Inc. (NYSE/WMT) and Costco Wholesale Corporation (NASDAQ/COST).

Costco delivered with strong results on Wednesday, after posting earnings of 312 million dollars, or $0.71 per diluted share, above the consensus estimate of $0.69 per diluted share, according to Thomson Reuters.

My Near-term Technical Assessment

By for Profit Confidential

The bulls appear to be in full control at this juncture.

On the charts, the NASDAQ has joined the Russell 2000 to move above their respective previous chart highs. This is bullish, but we need to see if the indices can hold.

Up, Up and Away for Stocks,
But No Bank Stocks for Me

By for Profit Confidential

What a month December has been so far for the stock market. The Dow Jones Industrial Average is up 3.5% in the first two days of December—its biggest two-day rally since July.

What’s fueling the rise in stock prices? Several factors.

Yesterday’s 250-Point Rally Very Significant for Stocks

By for Profit Confidential

I’m looking at the major business newspapers this morning and I see one big story missing from page one of these newspapers, “Dow Jones up 250 points yesterday, single-day gain of 2.3%!”

Yesterday’s big rise in the Dow Jones Industrial Average is very significant for the stock market.

Risks Are Starting to Outweigh Rewards

By for Profit Confidential

The S&P 500 Index has broken solidly below 1,200, and the trading action is the correction that the market’s required. I’d like the trading action to spread to commodities so investors could have another entry point. I think 1,150 seems likely on the S&P 500 index and an even 1,000 is a near-term possibility.

What’s Driving the Stock Markets?

By for Profit Confidential

Volatility abounds and it is coming from every which direction. The Eurozone’s fiscal problems unfortunately persist. Inflation has become a real threat in China and other emerging markets. The U.S. Federal Reserve’s second round of quantitative easing is controversial and, as such, has only dialed the knob on volatility up.

China: the Numbers Don’t Lie

By for Profit Confidential

The majority of the news is on Ireland and the fear that the debt issues there could spread throughout Europe and further dampen growth there.

But I have talked enough about Europe and will swing my focus to China—my favorite growth region for growth investors looking to increase portfolio returns.

The numbers don’t lie.

All Good Economic News, So Why Am I Bearish for 2011?

By for Profit Confidential

Important economic news and my analysis to share with PROFIT CONFIDENTIAL readers:

Jobless claims in the U.S. declined to 407,000 last week, according to the Labor Department, the lowest level since July 2008. My take: The economy is clearly improving. If the jobless claims are falling, then the unemployment rate for November 2010 will fall.

Burgers, Oil and Chemicals—Mature Industries Paying Off Big-time

By for Profit Confidential

I want to stay on the topic of large-caps for a while. Owning solid, dividend-paying stocks in the age of austerity is going to be a decent strategy, unless interest rates skyrocket and cash begins to pay more than stocks (always a possibility down the road, but not anytime soon). I’d like to see more gold producers pay more in dividends to stockholders. They already have so much cash on their books.

The Best Benchmark Stock of All

By for Profit Confidential

A company like Caterpillar Inc. (NYSE/CAT) has got to be one of the ultimate benchmark stocks to follow. If business is good in the global economy, so is business at Caterpillar.

This stock is hitting new 52-week highs, and it has been a tremendous wealth creator since the financial crisis in stocks ended. I wouldn’t be surprised if the company split its shares two-for-one in the near-future. Recently, the company issued bonds to Chinese investors in renminbi-denominated currency.

The Fed QE2 Saga Continues

By for Profit Confidential

The Fed has really been put through the ringer after it decided to push its way into the Treasury market one more time and unleash Quantitative Easing II (QE2) onto the U.S. financial systems in an effort to keep interest rates low and stimulate lending, borrowing and spending. In other words, everyone and their mother think that the Fed is back at its old tricks—fighting the debt mountain and dead economy with easy money.

Signs a Perfect Storm May Be Brewing

By for Profit Confidential

Are we seeing signs of the perfect storm arising in the stock markets? Not only do we have growth issues in the United States, but Europe and Asia continue to pose issues. I’m not saying the good times are over, but, for now, the market risk is higher. The inability of the major stock indices to break back to the previous highs was a red flag in my view.

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