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Market Watch: Investors Look For Clarity

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U.S. stocks were higher Wednesday, as Wall Street looked for clues to Friday’s jobs report after two counteractive sessions to begin the week.

The Dow started Wednesday in the same position as it began the week, as Tuesday’s losses cancelled Monday’s gains. Today, however, investors received a preview of Friday’s jobs report, as ADP reported that private businesses created almost exactly the expected number of jobs during May.

Investors also reacted to comments from European Central Bank (ECB) President Mario Draghi, who said that there was “nothing to say” about ongoing Greek debt talks. Draghi confirmed that quantitative easing was showing effects in the Euro Zone, and would continue for the time being. Earlier, the ECB announced the benchmark interest rate would remain unchanged at 0.05 percent.

Here are the final numbers from Wednesday on Wall Street:

Dow Jones Industrial Average: 18,076.27 (+64.33)

NASDAQ: 5,099.23 (+22.71) 

S&P 500: 2,114.07 (+4.47) 

Market Watch: Mixed Data Leads to Volatility

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U.S. stocks went on a roller-coaster ride Tuesday, losing 100 points before reversing course to trade close to even.

For months, we’ve been reading and hearing about how a stronger dollar was bad for stocks and American businesses. Yet Tuesday morning saw the dollar lose value against a number of currencies—and the Dow fell by nearly 100 points in response.

Also, with a lack of major U.S. data due on Tuesday, investors focused on Europe—and picked the wrong time to do so. Concerns grew over Greece’s ability to repay its considerable outstanding debts. Despite that, the Euro showed modest growth of 0.3 percent in the first quarter, moving it higher against the U.S. dollar.

By mid-day, however, the market reversed its course, recovering all morning losses and even eking out a gain across the three major indices. By late afternoon, all three indices were near their starting points.

Analysts claim this is all just background noise, leading to Friday’s jobs report.

Here are the final numbers from Wall Street on Tuesday;

Dow Jones Industrial Average: 18,011.94 (-28.43)

NASDAQ: 5,076.52 (-6.40)

S&P 500: 2,109.60 (-2.13)

Market Watch: Wall Street Looks To Start Over

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U.S. stocks were slightly higher Monday, as the markets attempted to rebound from a discouraging finish to the month of May.

Stocks were down for six of the last eight trading sessions in May, culminating in Friday’s 115-point loss on the Dow. Now June begins, a discouraging sign for investors who know that June has been a poor month for stocks over recent history.

Today, the markets looked to new data, including national factory activity (up slightly from April) and the Atlanta Fed’s GDPNow forecast (unchanged.) Meanwhile, data from China will hopefully help to determine whether further stimulus measures will be necessary in Asia’s largest economy.

Later this week, labor market reports will take center stage, as a Fed-obsessed market continues to look for clues regarding timing of interest rate hikes.

Here are the final numbers from Wall Street on Monday:

Dow Jones Industrial Average: 18,040.37 (+29.69)

NASDAQ: 5,082.93 (+12.90) 

S&P 500: 2,111.73 (+4.34) 

Market Recap for Week of 5/25—5/29

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It was a short week on Wall Street due to the Memorial Day holiday. Investors are probably grateful for that, as Tuesday and Friday saw the markets drop a combined 250 points! When all was said and done, May finished with the Dow up just 1% for the year!

Monday the markets were closed in honor of the Memorial Day Holiday.

Tuesday the market dropped as the U.S. dollar continued to strengthen. Specifically, the Euro fell below $1.09 against the dollar, while the Japanese yen fell to its lowest point in almost eight years. It certainly took its toll on the Dow, which fell 190 points for the day.

Wednesday the market attempted to recover, as sentiment regarding Greece’s ability to repay their debts improved. The dollar gave back some of the previous day’s gains as well. It was a record-setting day for the NASDAQ, and the Dow gained 121 points.

Thursday the markets started downward immediately, as word emerged of a collapse in talks to resolve the Greek debt crisis. Jobless claims were slightly higher than expected as well. While the market looked forward to Friday’s 1st-quarter GDP revision, the Dow fell 36 points.

Friday the markets took their second beating of the week, as 1st-quarter GDP was revised down to -0.7%. The Dow initially fell almost 200 points off this revision Worries over the Greek credit crisis continued as well. When all was said and done on Friday, the Dow was down 115 points.

Market Watch: New Concerns Over Greek Debt

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U.S. stocks were lower on Thursday, as hopes of averting the debt crisis in Greece were dashed overnight.

Wednesday saw the markets recover from a Tuesday sell-off, partly on the strength of Greek optimism regarding a deal to solve the nation’s ongoing credit crisis. But European officials denied claims that such an agreement was close. The proposed solution would have unlocked nearly 7.2 billion Euros (almost $8 billion) in financial aid funding for Greece. The renewed worries have the European Central Bank concerned about a Greek exit from the Euro zone.

Back at home, U.S. investors kept their eyes on the weekly jobless claims figure, which came in slightly higher than expected at 282,000. Tomorrow will bring a second round of estimates on first-quarter GDP.

Here are the final numbers from Wall Street on Thursday:

Dow Jones Industrial Average: 18,126.12 (-36.87)

NASDAQ: 5,097.98 (-8.62)

S&P 500: 2,120.79 (-2.69)

Market Watch: Wall Street Looks To Recover

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U.S. stocks were higher on Wednesday, as markets attempted to recover from Tuesday’s clobbering.

The Dow, NASDAQ and S&P 500 all lost more than 1% on Tuesday—the worst day this month on Wall Street. The dollar was the main culprit, rising more than 1.3% during the day and reaching its highest level against the Japanese yen in almost eight years.

However, it was the NASDAQ leading the way on Wednesday, closing at an all-time high of 5,106.59.

Continued data releases seemed to signal an impending interest rate hike, which has long been the fear of Wall Street traders and investors. It’s been nearly a decade since the most recent rate hike, meaning uncharted territory for many brokers and investors who’ve never attempted to operate in such an environment.

Wednesday was a quiet day on the data front, allowing investors time to absorb the news from Tuesday. The bounce back suggested a slight over-reaction, although the real story of the week may not be told until Friday, when the revised first-quarter GDP number is released.

Here are the final numbers from Wall Street on Wednesday:

Dow Jones Industrial Average: 18,162.99 (+121.45)

NASDAQ: 5,106.59 (+73.84) 

S&P 500: 2,123.48 (+19.28) 

Market Watch: Big Day for Data

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U.S. stocks were considerably lower Tuesday morning, as Wall Street geared up for numerous data releases after the Memorial Day holiday.

Both the Dow and S&P 500 hit new record highs last week, but finished lower to close the week on Friday. On Tuesday, investors watched the following data releases for clues on an impending interest rate hike:

  • Durable goods orders (down 0.5% for April)  
  • Home prices indices (gain of 5%, in line with expectations)
  • New home sales figures (rose 6.8%, higher than the expected 5.0%)
  • Conference Board Consumer Confidence report (a rating of 95.4, vs. an expected 96.1)

But it was the continuing strength of the dollar that had investors worried Tuesday, as the Euro fell below $1.09 vs. the American currency.

Meanwhile, Federal Reserve Vice Chairman Stanley Fischer made comments from Israel on Monday, offering his opinion that people need to stop worrying about when interest rate hikes will begin, and focus instead on ‘how high will they go?’ Fischer says many Fed economists believe the interest rate will hit 3.25%-4% within two to three years.

Here are the final numbers from Wall Street on Tuesday:

Dow Jones Industrial Average: 18,041.54 (-190.48)

NASDAQ: 5,032.75 (-56.61)

S&P 500: 2,104.20 (-21.86)

Market Recap: Week of 5/18 – 5/22

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For yet another week, the markets remained fixated on interest rates. Stocks moved down on Wednesday when the Federal Reserve all but confirmed that a rate hike is forthcoming sometime this year. However, comments from Chairperson Janet Yellen revealed little about the timing of that rate hike. As a result, the market continued running in place, going down 0.2% this week.

Monday markets spent most of the day moving up very slowly, in anticipation of important data releases later in the week. Investors ignored the re-emergence of credit concerns from the Euro Zone, where doubts over Greece’s ability to re-pay debts took control. For the day, the Dow was up 49 points.

Tuesday the market started higher, based on surprisingly upbeat new homes numbers. Construction began on 1.13 million new homes in April—more than the expected 1.02 million. However, throughout the day the dollar’s gains in strength pushed markets lower. By the end of the day, the Dow was up 13 points.

Wednesday markets were quiet throughout the morning, as investors awaited the release of the minutes from the most recent Federal Reserve meeting. But the minutes reflected a quiet meeting that revealed little more than the Fed’s dedication to being ‘data-dependent.’ The language within the minutes all but confirmed the Fed would raise interest rates sometime in 2015, which was enough to send the Dow down 26 points for the day.

Thursday markets continued to react to the Federal Reserve’s statement from Wednesday, but disappointing data on existing homes sales also weighed on stocks. Experts were expecting an uptick in sales, but a 3.3% drop sent markets lower in the morning. A small afternoon recovery was attributed to a 3% uptick in oil prices. For the day, the Dow stayed level, not gaining or losing a single point.

Friday markets stayed level in the morning, as investors considered the strongest core inflation figure in more than two years. A press conference from Federal Reserve chair Janet Yellen–the  event Wall Street waited for all week–ultimately yielded little in the way of new news. For the day, the Dow was down 53 points.

Department of Labor Extends Fiduciary Comment Period

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Last week, the Department of Labor succumbed to pressure from the financial industry and Congress by extending the comment period on a proposal to impose a fiduciary duty on brokers working with retirement accounts.

Despite the 15-day extension agreed upon by Labor Secretary Thomas Perez, many Wall Street figures remain unsatisfied.

The initial proposal came last month, two months after President Barack Obama spoke in favor of the fiduciary standard at AARP Headquarters in Washington, D.C. At the time, the standard 75-day comment period was granted before the rule would be further considered. But after much lobbying from lawmakers and Wall Street executives, Secretary Perez finally acquiesced last week.

“This is considerably longer than the typical comment period,” Perez wrote as part of a note to Senator Jon Tester (D-MT). “We believe this accommodation will provide adequate time for the public to provide their input on this issue and for the administration to continue its dialogue with the stakeholder community.”

Senator Tester was part of a group of nine Senate Democrats who wrote to Secretary Perez earlier this month, asking for a longer extension—45 days, to be exact. These lawmakers maintained that the law is too complex for comment to be filed in 75 days.

With the extension, the comment period will last until July 21, rather than the previously agreed-upon deadline of July 6. The initial comment period will be followed by a public hearing during the week of August 10, where representatives from the Department of Labor and financial professionals will make their voices heard on proposed changes to the rule.

A revised version of the rule will then be presented for an additional comment period of 30-45 days. Even without any further delays, it’s now likely that the process will extend past election season in November and into the final year of president Obama’s administration. At least one supporter of the measure says that’s no accident.

“It’s pretty clear [the financial industry] is trying to delay [the rule] to kill it,” said Micah Hauptman, financial service council at the Consumer Federation of America.

Comments from Wall Street didn’t do anything to refute Hauptman’s claim. Despite receiving the extension they’d requested, financial professionals maintained they still would need more time to ponder the proposal.

“While we appreciate the extra two weeks, federal regulators should further extend the comment period,” lamented Francis Creighton, executive vice president for government relations at the Financial Services Roundtable.

In a situation that seems to get cloudier every day, one thing is crystal clear—if there is ever to be a fiduciary responsibility on Wall Street, it won’t happen without a lengthy fight from lobbyists and a small bit of cooperation from the financial industry.

Market Watch: Fed Suggests Impending Rate Hike

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U.S. stock futures were mostly flat on Thursday, the day after the minutes from the most recent meeting of the Federal Open Market Committee all but confirmed an interest rate hike before the end of 2015.

While only a few policymakers support a rate hike as soon as June, the general consensus was that economic circumstances would allow for the first increase in almost a decade before the end of 2015.

Elsewhere, Wall Street will hope for continued good news in housing data with existing home sales news, but the April numbers badly missed their target. Sales fell 3.3%, as opposed to an expected 1% uptick.

Jobless claims met estimates yet again, and markets looked forward to Fed Chair Janet Yellen’s comments scheduled for tomorrow afternoon.

Here are the final numbers from Thursday on Wall Street:

Dow Jones Industrial Average: 18,285.74 (+0.34)

NASDAQ: 5,090.79 (+19.05)

S&P 500: 2,130.82 (+4.97)

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