The Closing Look

Stock Market Commentary:

Stocks rallied sharply on Friday after the Bank of Japan surprised the Street and took rates into negative territory and continued their QE (money printing) program. This is an aggressive move to help stimulate their market and boost their lackluster economy. Remember, Japan’s stock market just dipped into bear market territory two weeks ago when it fell 20% from its recent high. In the U.S., GDP slowed considerably in Q4 2016, growing by only +0.7%, missing estimates for 0.9%. The weaker than expected GDP reading may help the Fed keep rates near zero for longer than initially expected. Remember, Wall Street loves easy money so we are back in the environment where bad news is good news.

Gary’s Thoughts: Bad is good again…for now!

Investor's Edge: 01/29/2016

Investor’s Edge: 01/29/2016

The Morning Look

Stock Market Overview: 

Stock futures are up Friday morning. Overnight, the Bank of Japan surprised the world and took rates into negative territory as they continue printing money to stimulate their lackluster economy. In the U.S., the initial reading for Q4 GDP was announced. Friday is the last trading day of the month and this has been one of the worst month’s in the market’s history!

Gary’s Thoughts:  Remember what we have said. Strip away all the noise and we think two Wednesday’s ago, sellers were washed out. We still believe that and think there is more time and price to work off the stretched, extended and oversold condition in the market. We will have our usual award winning weekend report on Sunday. Oh…and GDP stunk!

Economic Data:

  • GDP 8:30 AM ET
  • Employment Cost Index 8:30 AM ET
  • Chicago PMI 9:45 AM ET
  • Consumer Sentiment 10:00 AM ET
  • Baker-Hughes Rig Count 1:00 PM ET
  • John Williams Speaks 2:45 PM ET
  • Farm Prices
    [Bullet3:00 PM ET

Highlights Of The Day:

    • Donald Trump Is the Favorite of Moderate Republicans
      Gary’s Thoughts: We think he is still the chalk.
    • Russia Comments Tease Oil Market Eager for Any Glimmer of Hope
      Gary’s Thoughts:  Oil-laden countries need to do something. It starts with yapping.
    • Xerox To Split Company and Icahn To Get Three Board Seats
      Gary’s Thoughts: XRX ripe for this as its stock is huge under-performer for year.

Microsoft Revenue Suffers in Weak PC Market @FoxBusines

Visa Shares Higher After Company Reports Q1 Results In Line @FoxBusines

Fortinet Shares Jump After Earnings Beat @FoxBusiness

Amazon Posts Fourth-Quarter Miss, Shares Tumble @FoxBusiness