March 19, 2024

ECB helps U.S. Dollar & market higher

Index & Sector performance 11/6/14

The Market:

Comments from ECB President Mario Draghi suggesting that the central bank is committed to stimulating the region’s economy helped send the S&P 500 (SPY) and the U.S. Dollar higher on the session.  As would be expected the Euro/Dollar cross was under pressure finishing the U.S. trading session at new 2 year lows.

A strong dollar is not a bad thing and increases global purchasing power of U.S. companies and individuals.  However, as we saw recently with the Trade Balance, a strong dollar can hurt exports.  Coupled with concerns over crude oil’s recent decline and what that may be saying about global growth and there is a recipe for concern.  Ultimately price is the key indicator and at this time the price action is clearly not concerned with the Dow (DIA) and SPY at/near new all time highs, the NASDAQ (QQQ) strongly outperforming, and even the Russell 2000 (IWM) recovering nicely from its earlier underperformance.

ADP was better than expected Wednesday followed by Unemployment Claims coming in better than expected today.  Tomorrow is the Jobs number and Unemployment report and it will be interesting to see if there is a trifecta of beats for jobs.

 

Economic Calendar week of 11/3/14

 

Reporting EPS 11/7/14 Pre-Market:

Companies reporting EPS 11/7/14 pre-market


Analyst Comments:

Upgrades 11/6/14

Downgrades 11/6/14

Initiations 11/6/14

Price Target Changes 11/6/14

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