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Posts in category Market Performance

Weekly Investment Advice

This coming week will ideally perform much better than last week. What will be a real market mover is the talk of the winding down of the Fed’s bond buying. e expect that this week will see upside, as we believe that there is no tapering coming this month, or even next month for that matter. Still holding our monthly end target of 1820-1825, as well as this week’s end of 1810 for the S&P. These are approximately a 2.4% and 1.8%  gain from Friday’s close. We are expecting a weekly end of 16050-16100 for the DOW as well. These are aggressive numbers, however

For those not familiar will this program, it is refered to as “quantitative easing” which is that the Federal Reserve has been pumping free money into the market. The federal reserve has been buying government issued bonds at a rate of $85 billion a month. This is with the hopes that this stimulus helps to boost the US economy. So far this has seemed to been working., however the potential long term consequences of this program could have consequences, so at some point it needs to be lowered or pulled competely. People think that pulling back this program, or at least lowering the amount per month, will have a very big effect on the economy and global domestic product (GDP) growth, in the short term. However the Fed, has also talked about that they will keep this program going until key economic indicators are hit; unemployment rate, inflation rate, GDP growth. The main one is based upon jobs data, which is the unemployment rate hitting a low point, looking towards 6.5%

Weekly Review

This past week, December 9th through December 13th, didn’t go as well as expected. We saw a record high at Monday’s close with the S&P at 1808.37. However, after that we saw a slight pullback through the rest of the week. This was due to the market worrying about what the Fed is doing. With some people thinking that the government bond buying will start to be tuned lower, there is hesitance that the market will still hold these tops if that happens.

The DOW and the S&P dropped 1.64% on the week, as well as the NASDAQ falling 1.51%. The weekly jobless claims were slightly skewed due to reporting errors for the two weeks previous.

Some highlights of last week; Facebook set to join the S&P 500, GE announces dividend increase, Federal Government passed a budget bill. Big market movers; Twitter up 31.26% on the week, Adobe was up 9.51%, and Atlantic Power Corporation was up 8.15%

Weekly Investment Advice

After the news at the end of the previous week, this coming week is probably looking quite bullish. Jobless claims last week were much lower than expected, down to 298K claims, bringing the unemployment percentage down to 7.0%. Last week ended up fairly flat, but this coming week’s should see some upside in the equity market. Expect to have a slight decline in the bond pricing through the end of the week.

Look for the equity market to have gains for at least the first three days, then look for next weeks unemployment numbers to be a key market indicator. Along with the uneploment numbers we also have retail sales and Producer Price Index (PPI) numbers. PPI is used as a major indicator for commodity pricing in the manufacturing sector. Retail sales consensus is to increase 0.6%, and 0.2% if you don’t include autos & gas. PPI numbers are looking to a consensus of -0.1%, and 0.1% less food and energy. Treasury budget will also come late on Wednesday, so look to that as a possible market mover.