STOCKS FALL: Here's What You Need To Know

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Stocks ended the week in the red. But at least the S&P 500 stayed above its 50-day moving average.First the scoreboard:

Dow: 13,328, +2.4, +0.0 per cent
S&P 500: 1,428, -4.2, -0.3 per cent
NASDAQ: 3,044, -5.3, -0.1 per cent

And now the top stories:

  • Eddy Elfenbein noted that the S&P 500 was dangerously close to its 50-day moving average.  For most investors, this is not a major concerns.  But for those who trade based on charts, an asset whose price moves below its 50 DMA average is setting itself up for a plunge.  According to Elfenbein, the S&P 500’s 50-DMA was 1,428.47. It closed today at 1,428.59, barely clearing that threshold.
  • According to the University of Michigan’s latest survey, consumer confidence jumped to 83.1 from 78.3 last month.  This was much better than the 78.0 reading expected by economists.  This was driven by improving expectations.
  • One thing that stood out from the report was inflation expectations. “Inflation expectations fell in both the 1yr and 5yr space, with 1yr expectations falling to 3.1% from 3.3% and 5yr expectations falling to 2.6%, the lowest reading since March 2009!” exclaimed TD Securities’ Gennadiy Goldberg.  This is rather extraordinary, especially as many sceptics have warned that easy Federal Reserve monetary policy would only fuel inflation.
  • Then again, deflation is also something to fear. “Although I agree that Ben Bernanke’s ruinous polices will ultimately take us down the road to rapid inflation, I still think we will travel there via another visit of outright deflation fear,” wrote SocGen’s Albert Edwards in a recent note to clients.  “I expect US inflation expectations as measured by the bond market to decline and fall into line with 5-year consumer expectations as measured in the Michigan Survey.” David Rosenberg Brought Down The House With This Depressing Presentation At A Conference This Week >
  • In earnings new, banking giant JP Morgan reported Q3 net income of $5.7 billion or $1.40 per share on revenue of $25.9 billion.  This was ahead of analysts expectations for EPS of $1.24 on revenue of $24.5 billion.  The stock fell.  However, everyone was thrilled to hear what CEO Jamie Dimon had to say about housing.  “Importantly, we believe the housing market has turned the corner,” said Dimon in the bank’s earnings announcement.
  • Don’t Miss: Stunning Images Of The Energy Sources Of The Future >
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