September 9th, 2013 – September 13th, 2013
Welcome to Financial Buzz Market Weekly, here at the New York Stock Exchange, bringing you a review of this week’s stock market.
This week brings a return of the Dow back up to over 15,000. A strong export report from China gave the market a reason to rally. China’s General Administration of Customs said exports climbed 7.2% in August year-to-year, up from July’s 5.1% gain, and June’s 3.1% decline. China’s industrial production rose 10.4% in August from a year ago and retail sales increased 13.4%.
Some bad news for Bank of America Corp. (NYSE: BAC), Hewlett-Packard Company (NYSE: HPQ) and Alcoa Inc. (NYSE: AA) All three are getting dropped from the DJIA, replaced by Goldman Sachs Group Inc (NYSE: GS), Visa Inc. (NYSE: V), and Nike Inc. (NYSE: NKE).
News about Syria is becoming more positive with the U.S. showing restraint, and Russia backing a plan to confiscate Syria’s chemical weapons by the United Nations. President Obama’s televised speech gave more reassurance to the markets that military action in Syria would be delayed, or possibly eliminated.
Due to conflicting reports, some showing strong growth in the economy, and others showing lackluster performance, analysts are now discussing a Fed tapering “lite”. The consensus is the Fed will start to cut it’s bond purchases to $75 billion a month, down just $10 billion below current levels.
Verizon Communication Inc. (NYSE:VZ) launched a $49 billion bond sale, and plans to use the proceeds to finance its acquisition of Vodafone’s stake in Verizon Wireless. Demand for the bonds was overwhelming, in excess of $100 billion, due to the relatively high yields offered.
Mortgage applications plunged 13.5% for the week ending Sept. 6, as mortgage rates hit their yearly high. Economists worry that if the Fed tapers its bond buying program, interest rates will go even higher and home mortgages will continue a downward spiral.
The new unemployment claims report came out showing a 31,000 drop, however, the Labor Department warned the numbers are probably not accurate due to two states having problems with their computer systems.
Retail sales were disappointing, economists expected a gain of .5%, however, August’s numbers came in at .2%. However, auto sales were a bright spot, up .9%. The Producer Price Index was up .3% in August, almost entirely due to increased food and energy costs.
Now let’s take a look at some stocks. Jammin Java (OTC: JAMN), dba Marley Coffee, announced revenue in their 2nd fiscal quarter is up 187% from a year ago. Gross profit margins increased to 29.4% compared to 11.9%. Marley Coffee produces artisan-roasted gourmet coffee, with an emphasis on sustainable and ethical farming.
Anticipation was intense as Apple Inc. (NASDAQ: APPL) announced the release of the iPhone 5C and 5s. The 5c emphasized a low price to attract budget conscious consumers, including consumers in emerging markets. The 5s features a processor that’s twice as fast as current models.
However, Apple shares fell more than 5% the day after the new devices premiered. Market watchers said the price may still be too high for emerging markets.
And finally, Direxion Daily Gold Miners Bull 3X Shrs (NYSEARCA: FAZ) has been dropping like a rock this week, due to easing of tensions in Syria and fears the Fed will soon curb its stimulus.