Related News
Wishy-washy stock market ends slightly higher
Source: Agencies |
August 11, 2012, Saturday
|
Online Edition
Online Edition
THE market had a wishy-washy yesterday, capping an equally directionless week.
Stocks inched down for most of the day. Then, with 45 minutes of trading left, the Dow Jones industrial average turned positive. The Standard & Poor's 500 and the Nasdaq composite soon followed. All ended the day slightly higher.
In a week with no major developments in Europe's debt crisis, and no surprising reports on the US economy, the market struggled to figure out which way to go. The three indexes rose incrementally on Monday and Tuesday and were mixed on Wednesday and Thursday. In this quiet week, the biggest move came on Tuesday, when the Dow gained just 51 points.
With many money managers on vacation, trading volume was low. "The sound of silence" is how Bank of America Merrill Lynch economist Ethan Harris labeled a note to clients Friday.
Sure, there were piecemeal signs about the world economy for anyone who was looking. But they were less than the decisive.
The second-quarter earnings season continued to wind down calmly, with most companies coming in ahead of profit predictions. But China reported a troubling slowdown in its export growth. And the end of earnings season means not that investors can relax but that the so-called fiscal cliff of 2013, when government spending cuts and higher taxes kick in, looms larger now and with less to distract investors away from it.
"There are three big elephants in the room," said Marty Leclerc, chief investment officer of Barrack Yard Advisors in Bryn Mawr, Pennsylvania. "A slowdown in Asia growth, the European crisis ... and the US 'fiscal cliff.' "
To be sure, stocks have risen fairly steadily since a year ago, when a downgrade of the US debt rating rocked the markets. Compared to a year ago, the Dow Jones industrial average is up 23 percent.
Yesterday, the Dow ended up 42.76 points at 13,207.95. The S&P 500 rose 3.07 to 1,405.87. The Nasdaq composite rose 2.22 to 3,020.86.
But the stock market's relative good cheer doesn't necessarily mean the underlying economy is improving. The market gains are more a sign that central banks like the Federal Reserve are still willing to artificially prop up the economy, said Bill Strazzullo, chief market strategist at Bell Curve Trading outside Boston.
"You've got every central bank out there saying, 'We're going to print as much money as it takes, we're going to buy as many bonds as it takes,' " Strazzullo said.
Europe, the cause of so much market consternation for so many months, was quiet. Benchmark indexes fell slightly in France, Germany and Spain. Italy's long-term borrowing costs jumped, a sign that investors are nervous about its ability to pay its debts.
Manchester United, the white-hot British soccer club, had a lethargic debut as a public company. The stock closed exactly where it opened, at US$14, likely a sign that investors are worried about its heavy debts.
A few stocks did make big moves. J.C. Penney jumped 6 percent, rising US$1.30 to US$23.40, after CEO Ron Johnson laid out more of his vision for turning around the struggling department store company. Lions Gate, the movie and TV studio, gained 21 cents to US$13.46, after reporting a revenue surge thanks to "The Hunger Games."
Chesapeake Energy fell 3 percent, slipping 63 cents to US$19.68, after reporting that the government is investigating possible antitrust violations surrounding its purchase of oil and gas land in Michigan. Yahoo fell 5 percent, losing 86 cents to US$15.15, after revealing that shareholders might not get a payout that the company had previously planned.
Stocks inched down for most of the day. Then, with 45 minutes of trading left, the Dow Jones industrial average turned positive. The Standard & Poor's 500 and the Nasdaq composite soon followed. All ended the day slightly higher.
In a week with no major developments in Europe's debt crisis, and no surprising reports on the US economy, the market struggled to figure out which way to go. The three indexes rose incrementally on Monday and Tuesday and were mixed on Wednesday and Thursday. In this quiet week, the biggest move came on Tuesday, when the Dow gained just 51 points.
With many money managers on vacation, trading volume was low. "The sound of silence" is how Bank of America Merrill Lynch economist Ethan Harris labeled a note to clients Friday.
Sure, there were piecemeal signs about the world economy for anyone who was looking. But they were less than the decisive.
The second-quarter earnings season continued to wind down calmly, with most companies coming in ahead of profit predictions. But China reported a troubling slowdown in its export growth. And the end of earnings season means not that investors can relax but that the so-called fiscal cliff of 2013, when government spending cuts and higher taxes kick in, looms larger now and with less to distract investors away from it.
"There are three big elephants in the room," said Marty Leclerc, chief investment officer of Barrack Yard Advisors in Bryn Mawr, Pennsylvania. "A slowdown in Asia growth, the European crisis ... and the US 'fiscal cliff.' "
To be sure, stocks have risen fairly steadily since a year ago, when a downgrade of the US debt rating rocked the markets. Compared to a year ago, the Dow Jones industrial average is up 23 percent.
Yesterday, the Dow ended up 42.76 points at 13,207.95. The S&P 500 rose 3.07 to 1,405.87. The Nasdaq composite rose 2.22 to 3,020.86.
But the stock market's relative good cheer doesn't necessarily mean the underlying economy is improving. The market gains are more a sign that central banks like the Federal Reserve are still willing to artificially prop up the economy, said Bill Strazzullo, chief market strategist at Bell Curve Trading outside Boston.
"You've got every central bank out there saying, 'We're going to print as much money as it takes, we're going to buy as many bonds as it takes,' " Strazzullo said.
Europe, the cause of so much market consternation for so many months, was quiet. Benchmark indexes fell slightly in France, Germany and Spain. Italy's long-term borrowing costs jumped, a sign that investors are nervous about its ability to pay its debts.
Manchester United, the white-hot British soccer club, had a lethargic debut as a public company. The stock closed exactly where it opened, at US$14, likely a sign that investors are worried about its heavy debts.
A few stocks did make big moves. J.C. Penney jumped 6 percent, rising US$1.30 to US$23.40, after CEO Ron Johnson laid out more of his vision for turning around the struggling department store company. Lions Gate, the movie and TV studio, gained 21 cents to US$13.46, after reporting a revenue surge thanks to "The Hunger Games."
Chesapeake Energy fell 3 percent, slipping 63 cents to US$19.68, after reporting that the government is investigating possible antitrust violations surrounding its purchase of oil and gas land in Michigan. Yahoo fell 5 percent, losing 86 cents to US$15.15, after revealing that shareholders might not get a payout that the company had previously planned.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
