Monday, August 16, 2010
Stock Market Commentary:
The major averages traded in a narrow range and hovered in and out of the black before closing higher as investors digested tepid economic data from the US and Japan. Volume totals on Friday were reported lower on the NYSE and on the Nasdaq exchanges versus the prior session, which was a sign that institutional investors were not buying shares aggressively. Advancers narrowly led decliners on the NYSE and Nasdaq exchange as the major averages closed relatively flat for the day. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed new lows by a large margin on the Nasdaq exchange. There were only 11 high-ranked companies from the CANSLIM.net Leaders List made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, up slightly from the 6 issues that appeared on the prior session.
Global Economy Continues To Slow?
Overnight, Japan said its economy slowed sharply last quarter with GDP missing forecasts. Japan’s economy grew by +0.4% on an annualized basis which was less than the Street’s estimate. This put pressure on overseas markets and US futures. The global recovery theme encountered more trouble after a weaker-than-expected report on the New York manufacturing sector was released. Since last week’s Fed’ meeting, approximately $1.9 trillion has been wiped from the value of global stocks. The benchmark S&P 500 fell over -4% since August 9 which put the latest rally under pressure.