Stock market 8/21/2011

Sunday, 8/21/2011

Last Week Market
Index Started Week Ended Week Change % Change YTD % DJIA 11269.02 10817.60 -451.42 -4.0 -6.6 Nasdaq 2507.98 2341.84 -166.14 -6.6 -11.7 S&P 500 1178.81 1123.53 -55.28 -4.7 -10.7 Russell 2000 697.50 651.69 -45.81 -6.6 -16.8
Stocks started the week strong, but economic uncertainty took hold and sank risky assets across the world with the S&P 500 falling 4.7%. Treasuries rallied, with the 10-year yield hitting a record low below 2.0% and gold advanced to an all-time nominal high.
Uncertainty regarding the state of Europe pressured stocks, especially financials. Germany's economy grew by just 0.1% in the second quarter and the eurozone GDP increased by just 0.2%. Germany's DAX equity index fell 8.6% for the week and is now down 21% this year. Asian indices also posted steep losses. Japan's Nikkei fell 2.7%.
Cyclical sectors took a pounding, while defensive sectors outperformed as investors positioned themselves for a potential downturn. Tech dropped 8.0%, industrials gave up 7.1% and materials shed 6.9%. Defensive investments utilities climbed 1.9%, consumer staples and telecom ended with slight losses near the unchanged mark.
Within the tech sector Google (GOOG -12.9%) shed 13% after the company announced it will acquire Motorola Mobility (MMI 54.7%) for $60 a share, a 60% premium.
Dell (DELL -5.9%) came under pressure as the company's downside guidance cast a pall over its upside earnings surprise. Pessimism about the company's near-term prospects lends credence to concerns that some analysts have about tech spending amid a slowdown in macro activity.
Hewlett-Packard (HPQ -27.0%) plunged 27% on word that the company plans to sell its PC business and purchase UK-based data analytics company Autonomy for $11 bln. HP also is pulling its devices based of a WebOS, which it acquired with the $1.2 bln purchase of Palm.
In other corporate news, retailers Home Depot (HD 4.3%), Target (TGT 3.0%) and Wal-Mart (WMT 5.1%) posted better-than-expected EPS.
Treasuries rallied as investors sought a safe haven. The 10-year yield dipped below 2.0% and settled the week at 2.07%, a decline of roughly 20 basis points from the start of the week.
Gold prices rallied 6.3% as the precious metal broke through another all-time nominal high. Crude oil fell 3.8% on concerns of a slowing global economy. The dollar index fell 0.8%
PPI increase more than expected 0.4% vs 0.2% market expect, continue with CPI rises 0.5% Vs 0.2% more than market expect. Filadelphia fed drop -30% , while leading indicator up 0.5 % vs 0.2 expected.
Next week Market Analysis

weekly candle for the dow
Weekly Money Flow

Next week Market mover: -Durable Order -Tuesday --> preassume... seems durable good order will be decline as philadelphia fed & empire manufacture decline sharply in July

• GDB estimate --> looking at good retail sales, could be some increase in the gdb
• Unemployment --> news most company doing lay off, no good for economy Next week going down --> seeing decline in durable order & GDB & initial claim climbs again=== This is a template ===

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Monday going up as no data...
Weekly accuracy 100% (1/1) daily Accuracy