Down 15 out of 16 Monday’s
The market declined for the 15th Monday out of the last 16. That is a pretty amazing trend. But, losses were minimal. The NASDAQ was off the most today. Apple declined by over one percent today. Some were slightly disappointed that they only sold 5 million iPhone 5's over the weekend. Whenever people have been disappointed in near term phone sales from Apple, they get burned. There are only so many hours in a weekend and only so many phones can be sold. Demand tends to remain strong and, despite what the near term projections are, they sell a ton of phones.
The transports were up by better than one percent today after last week’s decline. The railroads all traded higher today.
Paper stocks were up sharply today. Last week they were sold off aggressively when some of the companies announced they were going to increase capacity. Remember, an increase in supply is a negative think in a commodity. Today an analyst raised his rating on the industry group because recent price hikes have taken hold in the market. Steel stocks were lower on analyst downgrades.
Strength in the dollar hurt crude in trading today. Oil dropped below $92 a barrel and closed at $91.88 a 1.1% loss.
Telecom again outperformed the broader market. AT&T again traded higher. T offers an attractive yield and strong fundamentals. Those 5 million iPhone 5’s sold will generate an awful lot of cash flow for all the wireless service providers.
European stocks traded down 0.75%. There was little news from the continent today. Spain remains in the spotlight. By Friday Spain may have published the results of its bank stress test. This test will hopefully tell us the industry’s capital requirements.
Source: PFS Group
