Market Recap: Consumers and Energy Have Markets Limping Into Weekend
- Posted on October 28, 2011 at 5:58pm by
Becket Adams
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Markets closed up on Wall Street today:
- Dow +0.18 percent
- S&P +0.04 percent
- Nasdaq -0.05 percent
- Oil -0.54 percent
- Gold -0.17 percent.
On the commodities front:
- Oil (NYSE:USO) fell to $93.45 a barrel.
- Precious metals were mixed, with Gold (NYSE:GLD) down slightly to $1,744.80 an ounce while Silver (NYSE:SLV) gained just 0.02 percent to settle at $35.12.
Hot Feature: How Will Precious Metals React to the EU Bailout Plan?
Today’s markets were up because:
1) Europe: While news out of a summit in Brussels, where European leaders hammered out a plan to combat the region’s debt crisis, had markets up yesterday, some version of that same news is responsible for their lackluster performance today.
As is the trend, investors got a little ahead of themselves with the enthusiasm, only to come to the realization that the details of the plan are rather fuzzy and Europe’s problems aren’t over just yet.
Furthermore, Europe pitched its euro-zone deal to China (NYSE:FXI) today with the arrival of Klaus Regling, chief executive of the European Financial Stability Facility, in Beijing. China has yet to decide whether they will participate in the fund. In a news conference, Regling said “no conclusion, certainly, today during our visit” would occur. And it’s that neither-here-nor-there news that left markets unsure of where to land.
2) Consumers. The final reading of the University of Michigan Consumer Sentiment Index for October rose to 60.9, just slightly better than expectations. This report follows news yesterday that consumer spending was up during the third quarter, giving the economy a significant boost, considering consumer spending accounts for roughly 70 percent of the U.S. gross domestic product.
Profits for companies on the S&P 500 rose an average of 16 percent during the last quarter, based on results reported so far, with third-quarter earnings beating analysts’ predictions by 5.5 percent, compared to a rate of 3.3 percent since 2005.
3) Energy. Chevron Corporation (NYSE:CVX) reported net income of $7.83 billion, or $3.92 per share. Expectations were for a profit of $3.47 per share.
Chevron was one of the few stocks performing well today. Investors will want to keep an eye on its competitors Exxon Mobil (NYSE:XOM), Marathon Oil (NYSE:MRO), ConocoPhillips (NYSE:COP), and Total (NYSE:TOT).
[Editor's note: The following is a cross post that originally appeared on Wall St. Cheat Sheet]
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sbenard
Posted on October 29, 2011 at 7:17amThe WSJournal’s website has this headline today:
Euro-Zone Economic Data Point to Gloomy Year-End
http://online.wsj.com/article/SB10001424052970203554104577003110737775168.html?mod=WSJEUROPE_hps_LEFTTopWhatNews
Like it or not, we’re joined at the hip. Watch two things closely:
Report Post »1) Europe’s debt crisis. American banks have sold insurance to Europe’s banks against loss due to defaults there.
2) Confidence indexes. Loss of confidence leads to sudden crises. They’re coming! US consumer confidence levels are the lowest since early 2009!
TxMadMac
Posted on October 28, 2011 at 7:38pmI have so much to say about what‘s to come but they’d probably try to figure out a way to tax it !
Report Post »Eliasim
Posted on October 28, 2011 at 6:51pmYou know the U.S and the world is damned don’t you. Nothing short of God changing his mind is going to save it, and I don’t think that is going to happen. Every aspect of U.S and world existence is in violation of the Holy Scriptures. Even the way women for 50 years have gotten custody of the children usually in a divorce. What don’t you understand about the Son sitting at the right-hand of the Father?
Report Post »Eliasim
Posted on October 28, 2011 at 6:58pmEven President Obama would be different than he is if he would have sat at the right-hand of his own father and saw his father’s flaws, rather than his mother. Pathetic.
Report Post »Gonzo
Posted on October 29, 2011 at 7:41amEzekiel 14:12 12
The word of the Lord came to me: 13“Son of man, if a country sins against me by being unfaithful and I stretch out my hand against it to cut off its food supply and send famine upon it and kill its men and their animals, 14even if these three men—Noah, Daniela and Job—were in it, they could save only themselves by their righteousness, declares the Sovereign Lord.
I am afraid you’re right. Barring a great revival, I don’t see the U.S. recovering…pray for that revival.
Report Post »glennrocks
Posted on October 28, 2011 at 6:11pmThis is off topic, but why does Obama keep talking about the Hoover Dam? It is pretty ironic considering that the liberals want to tear the Hoover dam down. They want lake Powell area back to its original pre-Hoover Dam days. Liberal policies do not support building Dams, Roads, Buildings, that might cause global warming.
Report Post »steveh931
Posted on October 28, 2011 at 6:40pmHoover Dam creates Lake Mead. Lake Powell is N.E of the Grand Canyon created by the Glen Canyon Dam. This is the Dam they flood the Canyon with to restore the beaches along the Grand Canyon shore line. The erosion of beaches is one reason the environmentalist want to tear it down. Just a note!
Report Post »Eliasim
Posted on October 28, 2011 at 6:47pmProgressives built Hoover Dam and now they want to tear it down. That’s the epitome of progressives – Nuts. Whatever benefits them moment to moment.
Report Post »lukerw
Posted on October 28, 2011 at 6:07pmThe Socialist have spent the Treasuries of the World… and created Debt via borrowing, on paper, from sources that did not have Money! Are you kidding: SNAFU/FUBAR!
Report Post »neiman1
Posted on October 28, 2011 at 6:06pmThe increase in GDP and thus, consumer spending, was all in health care, energy, and gasoline. This might increase some taxes but doesn’t say much about Main Street getting healed.
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