Showing posts with label Dow Jones Industrial Average. Show all posts
Showing posts with label Dow Jones Industrial Average. Show all posts

Monday, October 30, 2017

Matterhorn Asset Management sees Dow losing 97 percent against gold



Citing the removal of the gold stand by Nixon, Matterhorn Asset Management sees Dow losing 97 percent against gold.

It sees the final step of the removing the gold standard in the U.S. as the key reasoning behind the assertion. It allowed the U.S. government to create unlimited credit and money.

The resultant credit expansion around the world has been unprecedented.

In the U.S. alone it has jumped from $1.5 trillion to approximately $70 trillion.

For that reason gold will continue to be a store of wealth in the years ahead, protecting the purchasing power of those holding it, as it has for thousands of years.

Matterhorn sees it vastly outperforming most asset classes going forward, including stocks, bonds and real estate.

It sees the Dow being overbought by the most it has in about 60 years, with gold and silver being artificially depressed at this time.

From 1999 to 2011 the Dow/Gold ratio plummeted by 87 percent. Even with a weak correction the ratio is still down 60 percent since 1999.

The current correction could allow for the ratio to climb a little higher, but the downside risk is increasingly massive.

Wednesday, August 31, 2011

Alcoa (AA), Caterpillar (CAT) Push Dow Up

After solid reports from the Chicago purchasing managers' index and factory orders, shares of Alcoa (NYSE:AA) and Caterpillar (NYSE:CAT) helped push the Dow up, as it moved slightly into positive territory on the year.

In early trading the S&P 500 (SPX) climbed 10 points, or 0.9%; and the Nasdaq Composite (COMP) was up 21 points, or 0.8%.

On Friday the August report for jobs will be released, with expectations of the economy adding about 80,000 new jobs. The unemployment rate should remain at 9.1 percent.

It also appears there will be another round of quantitative easing, with the question apparently only what form it'll take, not if it'll be implemented. That will put downward pressure on the U.S. dollar and push gold and other commodities up.

Alcoa was trading at $12.77, up $0.41, or 3.32 percent, as of 11:59 AM EDT. Caterpillar was at $91.70, jumping $1.87, or 2.08 percent.

Tuesday, April 12, 2011

Exxon (XOM), Chevron (CVX) Pulling Dow Down

Shares of Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) are weighing on the Dow today, as they tumbled with crude oil prices falling by over 3 percent to just over $106 a barrel.

This wasn't an unexpected correction, as oil prices had ended last week over $112.79 a barrel, a two-year high.

After recent massive rise in prices in the commodity sector in general, they have also been pressed down today, taking a breather. Both copper and silver dropped from recent highs.

Chevron was trading at $104.60, falling $3.18, or 2.95 percent, as of 2:36 PM EDT. Exxon Mobil was at $83.15, down $2.01, or 2.36 percent.

Thursday, March 24, 2011

Alcoa (AA) Rebounds, Leads Dow

Although struggling since highs hit in February, Alcoa (NYSE:AA) appears to be back on track again, thanks largely to the expected boost in aluminum demand from the Japan earthquake and tsunami as the country prepares to rebuild.

Alcoa let the Dow up on Wednesday, as some commodity prices continue to rise in anticipation of the orders mining companies will get.

Commodities like copper, iron ore, steel and aluminum are expected to generate strong orders in the short and long term.

Alcoa closed Wednesday at $16.95, gaining $0.50, or 3.04 percent.

Tuesday, March 15, 2011

Caterpillar (CAT), Chevron (CVX), Exxon Mobil (XOM) Support Dow on Otherwise Dismal Day

The performance of the Dow Jones Industrial Average would have been much worse than it was yesterday after shares of General Electric (NYSE:GE) and the Walt Disney (NYSE:DIS) company pulled the Dow down, as later in the session Caterpillar (NYSE:CAT), Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) moved up to offer some support to the index.

Chevron and Exxon moved up as the price of oil rose to over $101 a barrel. The energy sector was the only category ending Monday in the black, as crude prices rose.

Many other sectors and companies have significant exposure in Japan, including insurers like Aflac (NYSE:AFL) and uranium companies like Cameco (NYSE:CCJ).

Caterpillar closed Monday at $102.10, gaining $2.08, or 2.08 percent. Chevron closed at $100.80, up $0.87, or 0.87 percent. Exxon ended the session at $82.38, up $0.26, or 0.32 percent.

General Electric (GE), Disney (DIS) Pull Dow Down

With heavy exposure to the earthquake in Japan, General Electric (NYSE:GE) and Disney (NYSE:DIS) weighed heavy on the Dow, as it dropped to its lowest level in six weeks.

The Dow Jones Industrial Average closed down 51.24 points, or 0.43%, to 11993.16, cutting trading losses earlier in Monday's session in half. Earlier in the day, the Dow plunged to its lowest intraday level in six weeks.

Performing the worst in the Dow Was General Electric, which dropped 2.2 percent, with Disney falling 1.6 percent.

General Electric's weakness is on their exposure to nuclear facilities in Japan. CEO Jeffrey Immelt said the company is ready to provide technical assistance to the Japanese government its nuclear energy joint-venture partner Hitachi Ltd.

Disney took a hit because of the closure of Tokyo Disneyland and Disney Sea theme parks. They are expected to be shuttered for at least 10 days after the earthquake.

General Electric closed Monday at $19.92, falling $0.44, or 2.16 percent. Walt Disney Co. closed at $42.24, down $0.69, or 1.61 percent.

Wednesday, March 2, 2011

Wal-Mart (WMT), Coca-Cola Co (KO) Limit Dow Damage

The Dow Jones industrial average .DJI dropped 169.38 points, or 1.39 percent, to end Tuesday at 12,056.96. If not for Wal-Mart (NYSE:WMT) and Coca-Cola (NYSE:KO) closing in postive territory, the damage would have been much worse.

Concerns that rising oil prices could hurt economic recovery prompted investors on Tuesday to sell stocks and hedge against further declines.

The CBOE Volatility Index VIX .VIX, Wall Street's so-called fear gauge, jumped 13.1 percent to 20.75 on growing uncertainty about oil. The index measures the cost of using options as insurance against a decline in the S&P 500 .SPX index.

"We've been seeing how quickly the VIX can spike up, and there is no reason to believe that it won't double from where it is now," said Harry Rady, CEO of Rady Asset Management in San Diego, California.

Brent crude rose above $115 a barrel as supply disruptions persist and political violence spreads in the Middle East and North Africa. Higher oil translates into increased energy and gasoline costs for consumers.




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Tuesday, March 1, 2011

Alcoa (AA), Verizon (VZ), General Electric (GE) Pull Dow Down

Verizon Communications (NYSE:VZ), Alcoa (NYSE:AA) and General Electric (NYSE:GE) are weighing on the Dow, as all three in earlier trading were down by over 2 percent or close to it, although they rebounded slightly since them.

Stocks in the U.S. dropped in response to the continuing upward surge in oil futures, along with Federal Reserve Chairman Ben Bernanke comments.

The Dow Jones Industrial Average wasn't the only index falling, as the Nasdaq and Standard & Poor's 500 were down as well.

Bernanke hinted this phase of quantitative easing may be the last, as he sees economic growth as probably being self-sustaining.

Some see this as a negative, but most should be glad that Bernanke is even thinking about turning off the digital printing presses, as over the long term that is more harmful than the rest.

Friday, February 25, 2011

Boeing (BA) Gives Stocks a Boost

U.S. stocks advanced, snapping three consecutive days of losses, as shares of Boeing (NYSE:BA) surged and easing fears over supply helped crude-oil prices stabilize.

The Dow Jones Industrial Average rose 47 points, or 0.4%, to 12116. Boosting the measure, Boeing climbed 2.3% after the Air Force awarded a $30 billion tanker deal to the company late Thursday.

Intel (NASDAQ:INTC) was also strong, rising 2.8%.

Stocks rebounding as oil flattens as investors catch their breath. GDP revision comes in weak, and the economy still faces a nasty mix of headwinds. Kathleen Madigan, Kristina Peterson and Paul Vigna report.

The Nasdaq Composite climbed 1.2% to 2770. The Standard & Poor's 500-stock index gained 0.8% to 1316.

Helping to end the market's streak of losses, crude-oil futures stabilized as worries faded about supply shortages related to the unrest in Libya. Crude-oil prices hovered around $97 a barrel.

"We've seen some decent economic data in the consumer sentiment survey, [and] Saudi Arabia's announcement yesterday that they would meet any oil deficiency seems to have settled the markets quite a great deal," said Michael Farr, president of Farr, Miller & Washington. Investors were still eyeing oil closely for signs that energy costs could filter through in ways the market hasn't yet anticipated, Mr. Farr added.






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Monday, February 14, 2011

Wal-Mart (NYSE:WMT) Pulling Dow Down on JPMorgan (NYSE:JPM) Downgrade

The downgrade of JPMorgan (NYSE:JPM) on Wal-Mart (NYSE:WMT) continues to weigh on the Dow, which dropped by 16 points, or 0.1%, to 12,257.

JPMorgan said made their downgrade decision on seeing no short-term catalysts for the giant retailer.

The giant bank cut Wal-Mart from "Overweight" to "Neutral."

Wal-Mart was trading at $54.97, falling $0.72, or 1.29 percent, as of 1:14 PM EST.

Monday, January 3, 2011

Citigroup (NYSE:C) Boosts S&P 500, DJIA Estimates for 2011

Citigroup (NYSE:C) has come out swinging as a bull in the first trading day of 2011, with their latest projections a major increase in their estimates for the S&P 500 and Dow Jones Industrial Average.

For the Dow, they raised their 2011 target from 12,200 to 13,150, which would be about a 12 percent increase.

For the S&P 500, they jacked that up from 1,300 to 1400, a boost of about 11 percent.

The Dow and the S&P 500 soared to close out 2010, with the Dow soaring by 6.4 percent and the S&P 500 by 8 percent.

Monday, October 13, 2008

Gold Falls as Illusion of Safety Permeates Investors

The attempted government bailouts around the world, along with announcements by major economic powers that they are going to prop up the failed global banking systems, has many investors seeing stars, while bringing the illusion of safety.

Those factors are keeping gold from moving upward over the last several days, and is putting downward pressure on the metal instead.

December delivery for gold dropped $16.50 to end the session at $842.50 an ounce on the Comex division of the New York Mercantile Exchange. This is the third straight trading day gold has fallen.

In an unprecedented move, some major central banks announced they'll be working together with the Federal Reserve to offer auctions for unlimited U.S. dollar funds. In the past the funds were capped. This is an attempt to ease up the credit crisis and put liquidity back into the market.

The Dow also enjoyed an expected rebound today, as it broke the all time record for a point gain in a day, surging by 936 points, finishing the day at 9387.61

With all the government interference across the world, gold will probably swing up and down in big ways from day to day, as the uncertainty and almost daily announcements by central banks and governments leave investors unsure where things will go.

Any smart investor should know that much of what is happening now are moves related more to PR than it is to practical help. It's to soothe the fears of people rather than make any true positive impact.

History has shown that government interference only prolongs the pain, not helps ease it.

Gold is ready on the sidelines waiting for any excuse for investors to run to it for safety. I don't think its run up is anywhere near over, but the interference in the market makes it much harder to measure.