This blog will effectively analyze daily stock market trend analysis, market timing and the proper selection of the best stock/future/forex/commodity picks to maximize profit potential.

Monday, January 31, 2011

Closing Bell

Energy stocks led indexes higher Monday, the first day of trading since the growing unrest in Egypt caused the largest one-day drop in the broad stock market in more than three months. Bond prices fell slightly, sending their yields higher. The yield on the benchmark 10-year Treasury note rose to 3.38 percent from 3.33 percent late Friday. Bond prices rose Friday because investors sought less risky assets. Stronger economic data in the U.S. also helped push stocks higher. The Commerce Department reported that consumers increased their spending in December by more than analysts had predicted. Spending for all of 2010 rose by the largest amount in three years. Two stocks rose for every one that fell on the New York Stock Exchange. Volume came to 1.2 billion shares.

The Dow Jones industrial average gained 68 points, to close at 11,891. The broader Standard and Poor's 500 index rose 10 to 1,286. The Nasdaq composite index gained 13to 2,700.

Friday, January 14, 2011

Closing Bell

JPMorgan Chase & Co. and other banks drove stock indexes higher Friday. JPMorgan rose 1 percent after reporting that its income soared 47 percent in the fourth quarter. The bank set aside less money to cover bad loans and said it expected to get permission from the Federal Reserve to raise its dividend. Wells Fargo & Co., Bank of America Corp. and other large banks also rose on hopes that they too would be able to raise dividends. Banks slashed their dividends during the financial crisis to conserve cash. Investors have been urging banks to raise their dividends now that many of them are making money again. The Dow Jones industrial average gained 55 points to 11,787.38. The Standard & Poor's 500 index rose 9 to 1,293. The Nasdaq rose 20 to 2,755.30. Gains were spread across the market. Consumer staples companies were the only one of the 10 company groups that make up the S&P 500 index to fall. Financial companies gained the most, 1.7 percent. Bank of America Corp. jumped 3.2 percent to lead the 30 stocks that make up the Dow. Merck & Co Inc. had the largest fall, 1.3 percent. The Labor Department reported that consumer prices rose 0.5 percent last month, the largest increase since June 2009. However, 80 percent of the increase was due to higher gas prices, meaning that the risk of widespread inflation remains low.

Monday, January 3, 2011

Closing Bell

Stocks started 2011 with a big lift on Monday, and that could be a promising sign for the rest of the year. Investors call it the "January barometer." According to the Stock Trader's Almanac, a gain in the Standard and Poor's 500 stock index over the first five days of January has led to annual gains nearly 90 percent of the time. Signs that the economy is improving pushed stock indexes higher on the first trading day of the year. Manufacturing activity and construction spending both rose more than analysts were predicting. The Institute of Supply Management's index of manufacturing activity rose in December for the 17th straight month. Separately, the Commerce Department said construction spending rose 0.4 percent in November. The Dow Jones industrial average rose 93 points to close at 11,670, its highest close since Aug. 28, 2008. The index had been up as many as 134 points earlier in the day. The S&P 500 gained 14 to 1,271. The Nasdaq rose 38 to 2,691. The gains were broad. All 10 company groups that make up the S&P index rose. Financial companies led the way with a 2.3 percent jump. Treasury prices fell as the better economic news weakened demand for low-risk investments. The yield on the 10-year Treasury note, which rises as its price falls, moved up to 3.34 percent from 3.29 percent late Friday. Small companies, which are considered riskier investments, surged. The Russell 2000, which tracks the performance of smaller stocks, jumped 1.9 percent. That's nearly twice as big as the gain posted by the Dow, which tracks large companies. The dollar edged up 0.2 percent against an index of six heavily traded currencies.