Archives

U.S. Stock Funds Up For A Fifth Straight Week

U.S. stock mutual funds advanced 0.41% in scoring a fifth straight week of gains, according to Lipper Inc. data. It’s their longest winning streak since a six-week romp that ended in early August last year.

The latest gain put the average U.S. stock fund up 6.75% for the year. Funds that track the S&P 500 index, a proxy for the broad stock market, still lead the pack with a 12.54% year-to-date advance.

Small caps sat out the latest climb, with decline of 0.39% coming from small-cap growth, 0.17% from blend and 0.10% from value.

Sector funds were led by rallying precious metals. The metals jumped 9.15%, which cut their year-to-date loss to 4.50. Natural resources also trimmed their year-to-date loss, rising 2.34% to leave them down 3.15% so far this year.

World equity funds were mixed, with Latin America handing investors a 1.44% gain and China down 1.73%.

Stocks Stage Negative U-Turn, But China Tilt Lifts Some Shares

Stocks staged a negative reversal Friday, a day after doing the exact opposite. The Nasdaq settled for a 0.2% gain after being up 1.1% early. The S&P 500 pocketed 0.5% of its early 0.9% pop. The IBD 50 ended flat. Volume ran higher across the board. Friday was an expirations day, which tends to lift volume. Friday’s bearish chart action contradicted Thursday’s bullish pattern. On Thursday, …

The Big Picture is a subscriber feature. Take a free trial now to get instant access.

Try the Digital + Weekly Print Combo and enjoy the best of both worlds!
eIBD is available after market close to give you a head start on the next day’s market action. Plus, you get the Weekly Special print edition delivered right to your home or office!

Enter in your information (* Required fields)

Mobile Driving Growth For Search Leader Baidu

For China’s top Internet search firm Baidu (NASDAQ:BIDU), mobile is where growth opportunities lie.
Mobile is driving more and more of its top-line growth in recent quarters. In the third quarter, sales from mobile accounted for 36% of total revenue…

IBD 50 Lagging Indexes As Some Leaders Go Sideways

For three weeks, the IBD 50 has been flat even as the major indexes have made new highs.
The IBD 50 climbed 0.4% last week and has crawled up less than 0.1% so far this month. By comparison, the S&P 500 is up 2.2% and the Nasdaq 1.8% in November.

China Rate Cut Boosts Global Mining, Banking Stocks

The move by the Peoples Bank of China to lower interest rates Friday bumped up a broad range of stocks across global markets.

The PBOC trimmed key short and longer-term interest rates for the first time since 2012, in an effort to shore up what an increasing number of measures show to be a stalling economy.

On U.S. markets, Caterpillar’s (NYSE:CAT) gap-up move in strong volume was the headline responder. Chinese mining and construction are crucial to Caterpillar, particularly since paying $8.8 billion for mining equipment maker Bucyrus in July 2011.

Demand from China began to slow almost immediately after the acquisition.

Stimulus measures point to potential demand on both the mining and infrastructure building fronts.

Miners of iron ore and coal, who could use Caterpillar equipment and supply China’s raw materials needs, led the 1.1% advance by London’s benchmark FTSE 100 on Friday. The gains shined some hope on a week that saw iron ore prices notch their fifth straight decline, dropping to their lowest levels in five years.

Anglo American leapt 7% on the London exchange. Rio Tinto jumped 6%. In Germany, Frankfurt’s DAX surged 2.6% and the Cac-40 in Paris gained 2.7%. All the European exchanges were furthered by comments from European Bank President Mario Draghi that added stimulus measures were imminent from the ECB in order to bolster eurozone growth.

Ore mining stocks on U.S. markets also posted some of Friday’s best gains. Brazil’s Vale (NYSE:VALE) and Anglo American (OTCPK:AAUKY) gapped up.

Non-U.S. steel makers were also key beneficiaries of China’s rate change. Low-priced issues including Brazil’s Gerdau (NYSE:GGB) and Companhia Siderurgic (NYSE:SID) and Russia’s Mechel (NYSE:MTL) spiked higher. Among larger players, South Korea-based Posco (NYSE:PKX) and Luxembourg-based Arcelor Mittal (NYSE:MT) gapped up.

The spike in Brazilian companies powered the Sao Paulo Exchange’s benchmark Ibovespa, which spiked 5% Friday.

Brazil’s banks also led a strong response among global financial institutions. Banco Bradesco (NYSE:BBD) and Itau Unibanco Holding (NYSE:ITUB) scored sharp gains after the PBOC news. Banco Santander (NYSE:BSBR) gapped up.

In India, Icici Bank (NYSE:IBN) and HDFC Bank (NYSE:HDB) also gapped up.

NXP Semiconductors Banks On Apple, China Growth

NXP Semiconductors (NASDAQ:NXPI), which designs chips that enable secure mobile payments, hopes to get a lift from Apple (NASDAQ:AAPL).
The Netherlands-based company provides chips for the iPhone 6, and some analysts think it’s a supplier for the ne…

Stocks Rebound From Bad Start As Retailers Show Strength

Stocks stumbled at the opening bell Thursday but quickly reversed en route to an up day. The Nasdaq added 0.6%, while the S&P 500 lagged with a 0.2% gain. The small-cap S&P 600 popped 1.2%, smoothing over the previous session’s 1% dent. The IBD 50 tacked on 0.3%. Volume ran higher on the Nasdaq but lower on the NYSE. While daily gains in the major indexes have been unremarkable so far this month, …

The Big Picture is a subscriber feature. Take a free trial now to get instant access.

Try the Digital + Weekly Print Combo and enjoy the best of both worlds!
eIBD is available after market close to give you a head start on the next day’s market action. Plus, you get the Weekly Special print edition delivered right to your home or office!

Enter in your information (* Required fields)

Low Inflation Expectations Push Treasuries Higher

Treasuries rose, pushing yields on 30-year bonds to almost the lowest level this month, after a report showed that inflation remains below the Federal Reserve’s target even with the economy expanding and adding jobs.
The U.S. sale of $13 billion in in…

French Economy Contracts, China Economy Flattens, Markit

Global markets showed a modest reaction Thursday as researcher Markit released preliminary November purchasing managers indexes for China, Germany, France and the eurozone.

All are crucial economies right now, as the global economy fights to create even a slight sense of momentum.

The preliminary estimates, called Flash PMIs, reflect data collected between November 12 and 19 and are based on 85% to 90% of total survey responses for the month.

China’s major indexes ended narrowly mixed Thursday, leaving Hong Kong’s Hang Seng index down 3.2% thus far for the week and the Shanghai Composite down a fraction.

HSBC Bank’s Flash China PMI, compiled by Markit, shows manufacturing slowing, with the index at 50 in November, down from October’s 50.4. While factory output and purchases slipped from expansion to contraction and employment declines accelerated, manufacturers did report acceleration in new orders. Growth slowed in both new export orders and backlogs.

In Europe, France showed possibly the strongest response to the data. The Paris Stock Exchange’s benchmark Cac-40 index dropped 0.8% Thursday, leaving it up less than 0.1% so far for the week.

Overall economic activity in France contacted at a slower rate in November, with the Markit Flash PMI number improving to 48.4, from 48.2 in October. Manufacturing (46.5 in November) fared worse than services (48.8). The services sector posted its smallest decline in three months, while manufacturing posted its biggest drop since August.

In Germany, Europe’s largest economy and hardest hit by sanctions against Russia, the economy expanded for a 19th straight month in November, but growth slowed, leaving the PMI index at 52.1, down from October’s 53.9. The country’s services index slowed to 52.1, a 16-month low. Manufacturing marked a 2-month low at 51.4.

Employment continued to show resilience, expanding for a 13 th straight month but at its slowest rate in three months.

Frankfurt’s DAX index dipped in morning trade, but recouped its losses to end ahead 0.1%.

Total eurozone growth slowed to a 16-month low. Manufacturing flickered higher, but not much, while services sector growth marked its slowest expansion since last December.

Williams-Sonoma, Swift Break Out, Close Near Entries

Home-goods retailer Williams-Sonoma (WSM) gapped up to an 8% gain in huge volume Thursday, clearing a 75.79 buy point and touching an all-time high. The stock broke out from a 12-week cup-shaped base, but much of the base formed below its 10-week moving average, which is a flaw. Late Wednesday the company reported quarterly earnings and sales growth that topped analysts’ expectations. Earnings …

New Highs is a subscriber feature. Take a free trial now to get instant access.

Try the Digital + Weekly Print Combo and enjoy the best of both worlds!
eIBD is available after market close to give you a head start on the next day’s market action. Plus, you get the Weekly Special print edition delivered right to your home or office!

Enter in your information (* Required fields)