U.S. stocks rose on Wednesday as the Federal Reserve said the pace of economic deterioration appeared to be slowing, lifting the S&P 500 to levels last seen in January. The fed also opted to maintain the interest rate levels as is. Along with the fed comments, the earnings on some of the large cap companies pushed the markets higher.


Here is the market summary Video for Wednesday:


Also, this is an updated video no some earnings and guidance from (SBUX) and (V). If your trying to go long, not a bad video to watch!

Wednesday I was unable to trade as I had to sort out some Canadian taxes and am in overdrive for my medical license prep. I wanted to get in on the bank stocks but my timing at the “office” was a little late. I could not find a Starbucks with wifi access while I was outside today. Hopefully I can participate in a market movement on Thursday.

For Thursday:
Economic Indicator:
8:30AM Initial Unemployment Claims
8:30AM Personal Spending for March.
8:30AM Employment Cost Index for Q1.
9:45AM Chicago Purchasing Managers’ Survey for April.
11:00AM Kansas City Federal Reserve Manufacturers Survey for April.

Since its the end of the month, other countries could come out at during the day with their own indicators. The first one of the day, unemployment claims, is going to be a large factor on the markets. If the numbers are within expected ranges or better, this will signal good news.

Earnings:
With over 100 companies reporting on Thursday, I have narrowed down to a few companies worth watching. You may have your own list, its all about narrowing it down to a few instead of looking all over the map and getting confused.
(FLWS), (ABK), (CL), (DPZ), (EK), (ERICY), (GM),
(K), (MRO), (MOT), (DOW), (VIA), (MET), (WYNN),

News Worth Reading:
In early 2006, as Google Inc. (GOOG) was securing its dominance of the Internet search advertising market, it invested $1 billion in AOL, the Time Warner Inc. (TWX) online unit that was struggling to redefine itself for a new era. Now, as Time Warner moves to buy back Google’s 5% stake, AOL is also pondering an independent future under recently installed Chief Executive Tim Armstrong – albeit at a particularly difficult time for the online advertising market. Link.

Crude oil and gasoline rose after a government report showed an unexpected drop in U.S. inventories of the motor fuel as refiners reduced operating rates. Link.

Dendreon Corp. led drug stocks higher in afternoon trading Wednesday as shares of the biotech group rocketed on results from a positive study for its prostate cancer therapy Provenge. Link.

Sanofi-Aventis SA , Baxter International Inc. and GlaxoSmithKline Plc are talking with world health authorities about how to speed production of a vaccine to meet the global swine flu outbreak. Link.

There is also strong talk that the DOW could start pushing towards 10,000 again. This would be a nice level to break but it will take time. For anyone thinking that the markets are going to rally in a linear pattern is crazy. There will be “W” formations on the markets which means that at times the markets will rally, but will naturally pull back on profit taking before coming back up. Don’t get caught on buying at peaks. Look at the 120d moving avg so see if any resistance and supports are visible.

Finally, be on the lookout for a write up I will be doing on the Swine Flu. With the current crisis taking over the world, some sectors are worthy of shorting, while other companies might be poised to make you some money. How to understand the crisis could not only help you financially prosper in this situation, but prepare you in advance for any others that might occur in the future.

Last, before I go, for the first 90 days of 2009, my earnings (profit) is $30,000 US. This is just a small peak at my earnings as I contemplate how to post the break down for the months. Remember, I am breaking things down in the most basic ways without posting confusing indicators. Just follow news, trade without emotionally illogical reasoning and cash out without greed.

Happy Investing!

Aman, MBA

Related posts:

  1. Earnings Boost Wednesday Markets! From yesterday’s close, markets were on a surge after-hours, pre-market...