Binary Options Daily Review – May 21, 2010
U.S. stocks drop
U.S. stocks tumbled into their first correction of the long bull market Thursday, as investors unloaded stakes in companies with heavy international exposure on worries that Europe’s debt crisis would stall the global recovery. The Dow Jones Industrial Average ended down 376.36 points, or 3.6%. The S&P 500 Index closed down 43.46 points, or 3.9%.
Google, Intel, Apple in the news
Google Inc. gave up more than $19 a share, or 4%, to fall to $475.01. The company used its developers conference as a platform to unveil its new Google TV initiative with partners such as Intel Corp. Google product manager Rishi Chandra said, “It turns out on the Internet people use Flash,” and added that “part of being open means you’re inclusive,” a jab at Apple’s blocking applications which use Flash on its new iPad tablet and the iPhone.
Oil follows stocks down
Crude-oil futures ended lower on Thursday, mirroring steep losses for U.S. stocks and other commodities as investors wrung their hands about energy demand and feared Europe could derail the global economic recovery.
Gold ends lower
Gold futures declined Thursday as ongoing worries about the global economy sent U.S. stocks and other asset classes reeling, and institutional investors shied away from buying more bullion. Investors such as hedge funds have been unloading their long positions, or bets that prices will go higher.
Euro continues its pullback higher
The euro bounced back against major rivals in early Asian trading Friday, getting a lift against its Japanese counterpart after Japan’s finance minister warned about excessive yen strength. This is day 3 of the expected Euro pullback, as investors wait for the next wave of dollar strength.
How to trade Google into its earnings report tonight
Here is a great post about trading Google into earnings:
http://blogs.marketwatch.com/cody/2010/04/15/how-to-trade-google-into-its-earnings-report-tonight/
Stocks Shed Losses as Bank Stocks Gain
Stocks turned slightly positive as investors warmed to bank stocks, a day before the White House will announce its plans to charge the industry fees related to the industry’s bailout and as Congress probes the financial system’s collapse.
Major indexes faced pressure most of the morning after energy prices fell on an inventory surge and concerns persisted over global growth. But the mood turned a bit positive as Wells Fargo , Bank of America and others headed higher. BofA earlier was the biggest drag on the Dow.
Energy shares also fell after a report showed a larger than expected surge in inventories.
Oil prices dropped again, falling below $80 a barrel for the first time in 10 days even as the dollar continued to fade.
Chevron was the biggest loser on the Dow 30, which lost an early pop as the market sought to rebound from a losing day Tuesday.
Resource companies also fell, with Southern Copper dropping more than 2.5 percent.
Kraft Foods stoked some investor enthusiasm as it raised its outlook for the second time in two months. Investors even scooped up shares of Alcoa , which led the market lower yesterday after issuing disappointing earnings.
The market fell Tuesday on concerns over earnings and whether monetary tightening in China would stall the global economic recovery.
The China worries seemed to abate somewhat but remained a lingering concern.
“We don’t expect the effects of the current tinkering to be overly disruptive or derail the recovery trend,” Tinconderoga Securities analyst John Stoltzfus wrote in a morning research note that acknowledged a “steep selloff” remains possible. “Likely a look in the rearview mirror sometime down the road will tell us that China’s actions … were sensible and ultimately prudent.”
Technology continued to be a sore spot for the market, though, with chipmakers particularly weak and the Nasdaq lagging its counterparts. shares dropped for the second consecutive day as investors begin to take profits from an aggressive two-month rally in the group.
Google shares fell on news that it may pull out of China because of cyber attacks. Chinese search engine Baidu surged.
AstraZeneca was among the market’s big movers, rising after Credit Suisse upgraded the pharma leader to “neutral” from “underperform.”
Another snapshot of the economy comes at 2 pm New York time, when the Federal Reserve releases its Beige Book, the region by region assessment of economic conditions.
At the same time, the Treasury is out with the December budget statement, expected to show a deficit of $91 billion for the month, compared with a shortfall of $51.8 billion in December of 2008.
Sony gained as it postpones the launch of videogame Gran Turismo 5, citing production issues for the latest in that hot-selling videogame line.
