Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Friday, June 29, 2007

Last day of the quarter

Stock prices were growing nicely this morning but ran into a wall around noon. Each index finished slightly in the red due to an afternoon drop. Crude oil futures rose 84 cents, pushing the price above $70 a barrel. The iphone made its debut today and I am interested to find out if it's worth the hefty price tag. Let me know what you think if you happen to run across one. DJIA -13.66 Nasdaq -5.14 S&P 500 -2.36

Thursday, June 28, 2007

Stocks barely moved at all today, finishing within a few points of where they started. Tomorrow is the last day of the quarter, so markets could see some extra volume or exaggerated movements. My guess would be that trading will slow down the following week, with the Fourth of July holiday and many traders likely to be out at least part of the time. We will see. . . DJIA -5.45 Nasdaq 3.02 S&P 500 -0.63

Wednesday, June 27, 2007

Late surge

Stocks came on strong in late trading to finish in the positve. "Today's strength has been in technology – tech led the turnaround," said Marc Pado, U.S. market strategist at Cantor Fitzgerald. People are already standing in line to purchase Apple's new iphone, which makes its much awaited debut on June 29. Is it really worth it? DJIA +90.07 Nasdaq +31.19 S&P 500 +13.45

Tuesday, June 26, 2007

Deja vu

Stocks made another big upward effort Tuesday morning, but once again began to fall midafternoon and ended in the negative. Crude-oil futures were down $1.41 to $67.77 a barrel. Blackstone Group shares fell 5.2% to $30.75, below their $31 offering price, which is not a surprise to many analysts. Tuesday was almost a mirror image of Monday except for the much needed afternoon shower we received. DJIA -14.39 Nasdaq -2.92 S&P 500 -4.85

Monday, June 25, 2007

Not your average Monday

The market finished the day right around the point it started but don't let the calm numbers fool you. The early triple-digit gain on the Dow was nice while it lasted, but looming subprime-mortgage clouds overtook stocks Monday afternoon and the three major indexes finished in the red. On a positive note, oil prices are back around $69 a barrel. Wow, I feel like I just got off a roller coaster. DJIA -8.21 Nasdaq -11.88 S&P 500 -4.82

Friday, June 22, 2007

Cloudy Friday

We're begging for clouds and a little rain around here, but I didn't want it to rain on Wall Street. Markets dropped more than 1%. Bond yields are still causing a stir. Oil is also creeping back up. Overseas markets are getting a little jittery. All the while, the private equity group, Blackstone, is having a good entrance into public markets. Shares of the newly public company are taking off. I'm looking for a silver lining! DJIA -185.58 NASDAQ -28.00 S&P 500 -19.63

Thursday, June 21, 2007

Down then up

Stocks recovered nicely from an early morning drop. The Nasdaq index was the percentage winner, growing 0.65%. According to Bhushan Bahree of the Wall Street Journal, "World oil demand is growing twice as fast as a year ago, straining the petroleum industry's ability to keep up with global needs and likely resulting in higher and more-volatile prices for some time to come." Let's hope for the best. DJIA +56.42 Nasdaq +17.00 S&P 500 +9.35

Wednesday, June 20, 2007

Yields Trump Earnings

It seemed like it would be a good day for Wall Street. Morgan Stanley announced earnings, and they were up a whopping 40%. FedEx posted a profit increase this quarter of 7.4%. All good, right? Well, bond yields stole the day, easing up and causing stock investors to head for the exits. Kerkorian is also making noise, backing out of some deals with MGM. All indexes declined more than 1% for the day. DJIA -146.00 NASDAQ -26.80 S&P 500 -20.86

Tuesday, June 19, 2007

Rough weather, calm market

The market simply yawned today. Each major index grew, but there were no significant changes. The weather was quite the opposite, as severe thunderstorms were issued all around the Jackson area. In national news, Home Depot Inc. sold its wholesale construction supply business for $10.3 billion. Bain Capital LLC, Carlyle Group L.P. and Clayton, Dubilier & Rice Inc. will each receive a one-third stake in the business. DJIA +22.44 Nasdaq +.16 S&P 500 +2.65

Monday, June 18, 2007

Rising oil prices

The market was fairly quiet today as all 3 indexes slightly dropped. More focus is on crude-oil futures as they went up $1.09 today, reaching $69.09 a barrel. AT&T realeased a $10 DSL plan which they seem to be trying to keep quiet. The DSL, or digital subscriber line, plan introduced Saturday is part of the concessions made by AT&T to the Federal Communications Commission(FCC) to get its $86 billion acquisition of BellSouth Corp. approved last December. DJIA -26.50 Nasdaq -0.11 S&P -1.86

Friday, June 15, 2007

Winning Ways

Markets have returned to their winning ways, as all indexes posted substantial gains again today. Intel was upgraded, which gave a big boost to NASDAQ, making it the winner among the winners. Inflation fears have subsided, and Mr. Bernanke is in positive speak mode. All's right with the world. Around here, we're hoping Mississippi State's baseball team can continue their winning ways. They play tonight in Omaha, and a certain "JS" is betting the farm that his dawgs can win the trophy. Ohhh... it may be a long Monday!
DJIA +85.76 NASDAQ +27.30 S&P 500 +9.94

Thursday, June 14, 2007

Sweet Repeat

Markets surged again today, shedding the doldrums and concerns of the last week. Consumer prices rose, but the increase indicated inflation MAY not be as imminent as predicted. Yields continue to rise, with mortgages showing the biggest effects. The 30 year mortgage is now sitting at 6.74%. Will this be another blow to the slow housing market? Stocks added more than 1/2% today. DJIA +71.38 NASDAQ +17.10 S&P 500 +7.30

Wednesday, June 13, 2007

Four to one

Is the number of advancers compared to decliners on the NYSE today. All three major indexes grew over 1%, making up some ground on the recent losses. Senate began debates on an energy bill that will hope to slow gasoline consumption and push cleaner fuels for electric power plants. Even if it passes it's not likely to reduce gasoline prices anytime soon. It was a good day, especially if you were able to stay cool. DJIA +187.34 Nasdaq +32.54 S&P 500 +22.67

Tuesday, June 12, 2007

All About The Curve

Treasury yields inched up a little further, crossing the 5.25% mark. As the yield curve continues to reshape, the stock market wrings its hands about inflation. The result was an overall drop of around 1% for the day. While fuel is not part of the "core inflation" calculation, one help may be lower gasoline prices. Jackson, Mississippi has the lowest price per gallon now, hovering in the $2.80 range. Predictions are that gas prices will continue to drop until the next big holiday, July 4th. We may not get a break from the heat, but a break from the high price of gasoline would be a welcome relief! DJIA -129.95 NASDAQ -22.38 S&P 500 -16.12

Monday, June 11, 2007

Too Hot To Move

Markets barely budged today. In this heat, we are barely moving, as well. The temperatures in Mississippi are red hot! Taking out the trash has become an aerobic event and a reason to change clothes. It's definitely summertime. Markets are lolling around, but considering the events of last week, that can be a good thing. Oil is easing up again, as all those SUVs hit the road for vacations. The yield curve is still adjusting. All indexes yawned. Steve Jobs is at it again. He's pushing Apple into competition with the likes of Blockbuster, as they gear up for rental of movies online. With this heat, it will be just another reason to never leave home!
DJIA +0.57 NASDAQ -1.39 S&P 500 +1.45

Friday, June 08, 2007

Market bounces back

The market came out of a slump with all three indexes finishing up on the day. The Nasdaq won the percentage game, moving up 1.27%. Crude-oil futures dropped $2.22 to $64.71 a barrel as Cyclone Gonu faded and recovery began. The Mississippi State Bulldogs won the opening game of their super regional this afternoon by a score of 8-6 against the Clemson Tigers. All in all, Friday was good day. DJIA +157.82 Nasdaq +32.16 S&P 500 +16.74

Thursday, June 07, 2007

A Changing Shape

Finally, the yield curve is easing back to it normal shape. For the last couple of years, we've lived with an inversion. These often foretell a recession, but none appeared. Now, things are heating up. There's a fine line between solid growth and runaway growth that leads to inflation. Treasury yields are climbing, and the yield curve is looking normal again. Whew! Right? Well, there's a caveat. As bond yields climb, they take a negative toll on stock prices. PIMCO's famous bond manager, Bill Gross, is now bearish on BONDS because of rising interest rates. But rising rates cut into company earnings and push investors out of equities and into the bond market. That's what all the fuss has been about this week. Will this settle out, and will markets set a new upward course? Stay tuned! DJIA -198.94 NASDAQ -45.80 S&P 500 -26.66

Wednesday, June 06, 2007

To Raise Or Not To Raise

Will the Fed raise rates? Will they lower rates? Will they keep them the same? Ahh, that is the question. Bernanke gave signs of possible rate increases, and it sent waves through the market. Other economies are considering raising rates to slow down the fast pace of economic growth. All this talk has led to a reversing trend on Wall Street. All indexes gave up another 1% today. The fight is ongoing for Dow Jones. As markets struggle to find their way, the bastion of financial news is struggling to determine who will be its owner. DJIA -129.79 NASDAQ -24.05 S&P 500 -13.57

Tuesday, June 05, 2007

Change of pace

Tuesday brought a change of pace as all three indexes finished in the red. Nasdaq and S&P took a stumble losing 7.06 and 8.23 points respectively. The Dow dropped significantly this morning, followed by a slight afternoon recovery, leaving it with an 80.86 deficit for the day. Today's loss could possibly be contributed to Bernanke's comments on inflation risks, even though he still feels confident about the outlook of the U.S. economy. The rough morning was "interest-rate driven," and came "a little out of the blue," according to Bennet Sedacca, president of Atlantic Advisors. President Bush spoke in Prague today, discussing his world-wide push for freedom and democracy. I am interested to see where our market will be tomorrow. DJIA -80.86 Nasdaq -7.06 S&P 500 -8.23

Monday, June 04, 2007

On the rise

It was another day of highs, as the Dow and S&P reached new records. Nasdaq improved a solid 4.37 points. China continues to struggle as China's Shanghai Composite dropped 8.3% today, the largest single day fall since February. If you have seen this week's weather forecast you will know that our market is not the only thing on the rise. Highs are supposed to be in the mid to lower 90's for the entire week. It's going to be a long summer...
DJIA +8.21 Nasdaq +4.37 S&P 500 +2.84

Friday, June 01, 2007

It keeps growing and growing

Yesterday's hill was easily overcome as U.S. markets continue to push forward. The Dow rose over 40 points, while S&P grew nearly 6 points, both setting new record highs. Nasdaq sneaked in between the others, increasing over 9 points. GM and Toyota rebounded showing solid gains for the month of May. Wal-mart seems to be inversely related to our economy's success as it expects to cut one third of additions to U.S. supercenter stores and limit future expansion due to increased shareholder pressure. All together... a good day. DJIA +40.47 Nasdaq+9.40 S&P 500 +9.40