Required Reading Of The Day

Zika outbreak could infect 4 million people: WHO

The Closing Look

Stock Market Commentary:

Stocks rallied on Thursday after investors made their way past Wednesday’s Fed meeting and digested the latest round of earnings and economic data. Facebook (FB), PayPal (PYPL) and Under Armour (UA) were some stocks that rallied after reporting numbers on Thursday. Meanwhile, eBay (EBAY), Harmon (HAR), and Service Now (NOW) gapped down after reporting numbers. Economic data was mixed: Durable Goods fell -5.1%, missing estimates for a 0.2% gain. Jobless claims came in at 278k, beating estimates for 285k. Pending home sales rose to 106.8, just beating estimates for 106.7.  The Kansas City Fed Manufacturing Index fell to -9 which shows is not healthy.

Gary’s Thoughts: In the aftermarket, Amazon down about $85 after being up $50 today. We are writing this at 11 pm and just found out another maniac at the Bank Of Japan just went to negative interest rates. Japan has had easy money and 0% rates forever and it never ends. They keep repeating the same mistake over and over just like the rest of the central banks. Of course, the initial reaction was to buy stock as the yen tanks. But not sure this lasts. We remain off of last week’s lows but the assinine jagged action continues.

Investor's Edge: 01/28/2016

Investor’s Edge: 01/28/2016

Don’t worry! All’s well! It’s only going to be $27 trillion of OUR debt!


A few early notes!

We told you two things recently…that a low was put in on last Wednesday’s washout (for now…and in a bear market) but expected things to be jagged. The past four days of the Dow were +210, -208, +292 and -222…and now we walk into another gap to the upside. Yesterday, Apple affected things negatively. Today, Facebook affects things positively. Yesterday, Amazon and Google were yonked for $20, today they gap up over $20 in sympathy with Facebook.

Having fun yet! Amazon,Google, Microsoft still to report and thankfully, the Fed is out of the way…until next time!


The Morning Look

Stock Market Overview: 

Stock futures are strong on Thursday as the market does the usual about-face from whatever happens on Fed day!

Gary’s Thoughts: Facebook a huge help. It has helped the NDX but also enabled but Google and Amazon to get back the large losses from yesterday. Hey…you play this! Just remember, the low from last Wednesday is still in but recent action is almost impossible to gauge or game. There is still zero leadership except for a few defensive areas.  Also remember, the rest of the week is end of the month and end of a gross month.

As far as Facebook, those that know us know we love strong gaps to the upside off of strong earnings…but that is in bull markets. Bear market gaps tend to be different as they tend to be nothing more than n opportunity for big sellers to get out. We as always, will let the stock decide. Just keep those thoughts in mind. We have no position in the stock as of this second.


Economic Data:

  • Durable Goods Orders 8:30 AM ET
  • Jobless Claims 8:30 AM ET
  • Bloomberg Consumer Comfort Index 9:45 AM ET
  • Pending Home Sales Index 10:00 AM ET
  • EIA Natural Gas Report 10:30 AM ET
  • Kansas City Fed Manufacturing Index 11:00 AM ET
  • Fed Balance Sheet 4:30 PM ET
  • Money Supply 4:30 PM ET

Highlights Of The Day:

    • Stocks sell off hard after the Fed meeting
      Gary’s Thoughts:
    • BlackRock’s Fink Says 400 Energy Firms May Not Survive Cheap Oil
      Gary’s Thoughts:  
    • U.S. to Halt Blood Donation by Travelers to Zika-Affected Areas
      Gary’s Thoughts: Really!