June 26th 2014 – S&P 500 Slides For Third Day In Four

Market View:

Yet another impressive bullish recovery in stocks that may signal a move higher tomorrow.  Typically, after such a strong response to a morning sell off continues the following day.  I think also given the fact that the market has closed negative the last 3 out of 4 days indicates that another push higher is on the cards.  We shall see.

Market News:

U.S. stocks fell on Thursday as government data prompted downward revisions to U.S. economic growth in the second quarter and after James Bullard, head of the Federal Reserve Bank of St. Louis, said interest rates could increase sooner than expected.

And, while the market was rattled by comments from Bullard, Several market observers pointed out that the Fed official’s comments were not new in the sense he has offered a similar take before.

Bullard, a non-voting member of the Federal Open Market Committee, on Thursday told Fox Business Network the Fed’s first interest rate hike could come at the end of the first quarter of 2015, reiterating what he told reporters following a May 16 speech in Little Rock, Ark.

Financials were among the hardest shares hit in the wake of a fraud lawsuit against Barclays, with U.S.-listed shares of the British bank falling sharply. GoPro rallied in the wearable sports camera maker’s market debut; and ConAgra Foods rose after the maker of Hunt’s tomato ketchup and Slim Jim beef jerky posted better-than-expected quarterly revenue.

Goldman Sachs reduced its second-quarter GDP tracking estimate by five-tenths to 3.5 percent after Thursday’s reports.

Another report had U..S. jobless claims declining by 2,000 to 312,000 last week, in line with expectations.

Friday:

Earnings: Commercial Metals, KB Home

8:30 a.m.: Personal income

8:30 a.m.: Consumer spending

9:55 a.m. Consumer sentiment index

News Sources:  CNBC and CNN Money