Following a extremely ugly day in the markets yesterday as the markets tumbled over 1.5%, I wanted to pass along some key developments that took place which support my view that stocks should be viewed with caution...
Yesterday:
- Byron Wien, one of the most successful money managers of all time, was on CNBC talking about how he believes stocks have hit there highs for the years and even went as far to say he could see the market move 5% or more to the downside before years end...here's a link to his interview, just click on it
http://www.cnbc.com/id/100978762
-Wells Fargo announced that it is laying off 2,300 mortgage employees as they are seeing some signs of slowing mortgage business demand (this could be a sign that the housing market may be taking a slight breather as interest rates have crept up of late)
- the Federal Reserve, in their recently released meeting minutes, discussed how they were still "data dependent" and weren't making any changes to their monetary policy as they are still monitoring the U.S. economy to see if the minimal growth will sustain itself
- the really big news on Wednesday was that the California Little Leaguers Win in the ninth Inning! The biggest news of the day, for some of us, was the Chula Vista win, which takes them into the U.S. Little League championship on Saturday. I will be watching the finals on Sunday between the U.S. and international winners! Japan had a big win over Mexico on Wednesday. My guess: It's Japan vs. California in the finals. Japan will be tough to beat, as they are disciplined and have an amazing pitching staff.
Overnight
- Target and Limited Brands, both major retailers reported earnings that were in line but said they were cautious on consumer spending going forward as sales have slowed of late
This Morning
- Abercrombie and Fitch and Sears Holdings, also both major retailers reported big earnings misses and lowered their guidance going forward as they are also seeing a possible slowdown in consumer spending. (concerns about retail spending has been something I've been watching of late)....not to be too negative on consumer spending, Home Depot had great earnings earlier in the week and also guided up for the next quarter as they are seeing strong spending at their home/landscaping retail stores (which shows how housing has been strong so far this year).
- Hewlitt Packard, one of the largest technology companies in the U.S., reported ugly earnings and guided down for the upcoming quarter as they are seeing sluggish tech sales in the both the private and government sectors
I'll post another update later today or in the morning....
