Market Review By TraderXP:
Gold rally this year and to rise further in 2014, the U.S. Federal Reserve policy producers are likely to support the purchase of assets for two years to support the recovery, according to Morgan Stanley.
Gold was the biggest quarterly drop since 2008 in the final three months of last year, data showed recovery largest economy is gaining momentum, increasing concern the Fed may reject stimulus. Minutes from the December meeting of the Federal Open Market Committee, released on January 3, said asset purchases is likely to end this year. Each month, the Fed pledged to buy $ 85 billion of Treasury bonds and mortgage debt.
"We doubt that the dissenters in the current FOMC monetary policy can stall the current policy settings to the end of 2014," analysts wrote, referring to the high rate of unemployment and the so-called tail risks to growth. There will be a "constant striving for QE3", they said, using the initials for the third round of quantitative easing.
Market News
S & P for the sixth day, Apple may stop sliding rally
S & P 500 rose for the sixth day after Wednesday stronger-than-expected earnings from IBM and Google, but the rally could be shut down as Apple, after an hour of miss sent its shares lower.
S & P was only 4.7 percent from its all-timeclosing high as IBM and profits Google, released after the close on Tuesday, and then on the heels of strong U.S. economic data.
"People were kind of nervous about the coming earnings in the current quarter, but the numbers still show strength in earnings," said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.
But Apple, still the largest U.S. publicly traded companies, fell by 8 percent in extended trading after the sale of its flagship iPhone came in below analyst targets and quarterly revenue slightly missed Wall Street expectations.
"One thing that stands out ballooning of balance, where they now have $ 137 billion in cash and investments," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut. "You have to know when they are going to put some more to work with."
Reduction issues beat advanced in both NYSE and Nasdaq during regular business hours of the market, as a sign of the rally in the market can be overloaded. The broad Russell 2000. RUT closed the day up 0.3 percent after earlier strikes and intraday time high just below 900 points.
Shares of IBM Corp, the largest company in the world technologyservices, rose by 4.4 percent during the normal business hours of the market to $ 204.72, providing almost all of the 67-point margin Dow.
Also helping the tech sector was 5.5 per cent jump in Google Inc to $ 741.50. Internet search company said its core business ahead of expectations, and revenue was higher than expected.
S & P technology sector grew by 1.2 percent.
Index Dow Jones Industrial Average rose 67.12 points, or 0.49 percent, to 13,779.33, S & P 500 rose 2.25 points, or 0.15 percent, to 1,494.81, and the Nasdaq Composite added 10.49 points, or 0.33 percent, to 3,153.67.
Test S & P 500 is only 0.35 per cent of the stroke 1.500, level not seen since December 12, 2007.
S & P 500 futures fell 4.1 points, or 0.3 percent, and the Nasdaq 100 futures fell 20 points, or 0.7 percent.
Netflix shares soared 32 percent, above $ 136, after the video subscription service said it added subscribers in the U.S. and abroad and posted a quarterly profit.
LED manufacturer Cree Inc jumped 22 percent to $ 40.85 after it forecast a higher-than-expected third-quarter earnings, and reported results above analysts' estimates.
Upscale leather goods maker Coach Inc fell 16.4percent to $ 50.75 after reporting sales that missed expectations.
Market clearing the obstacle, the House of Representatives adopted a Republican-led plan to expand the country's borrowing authority until mid-May. This delays the opposition in Congress, similar to one in 2011 that caused the impasse that caused the first-ever downgrade of U.S. debt.
Thomson Reuters data through Wednesday showed that of the 99 S & P 500 companies that have reported earnings so far, 67.7 percent exceeded expectations, more than 65 percent of the average strike for the last four quarters.
Overall, S & P 500 fourth-quarter profit rose 2.8 percent, according to Thomson Reuters. This estimate is higher than 1.9 per cent forecast in the beginning of the season earnings.
Top U.S. manufacturers sounded confident notes about his expectations for 2013 on Wednesday as fears of the end of the year "financial cliff" faded into memory.
In the regular session, about 6.1 billion shares changed hands on the New York Stock Exchange, NYSE, Nasdaq and MKT, below the 2012 daily average of 6.45 billion.
On the NYSE, about 15 issues fell for every 14 that rose on the Nasdaq and seven fell for every five wins. Reuters.com
Currencies
Ian rebound now pauses, eyes on China data
Rebound yen suddenly stopped on Thursday with investors wary of further reducing bearish bets on expectations that the Bank of Japan will be under pressure again to ease policy.
Risk appetite took something of a hit early when Apple, disappointed the street, sending its shares 10 percent and hurt stock futures. High beta currencies such as the Australian dollar ticked down on the news, although the impact on the currency market was limited until now.
Markets are now waiting for fresh cues including Japanese trading rooms December due 2350 GMT and HSBC, a flash report on the manufacturing sector in China 0145 GMT.
In turn, the U.S. dollar not to go back to 88.58 yen from 88.06 a week trough. On Monday, the dollar rose to 2-1/2 year high of 90.25.
In a similar move, the euro came around 118.00 yen, then slid to one-week low of 117.06. It was still within reach of a 20-month high of 120.73.
Investors have cut short positions yen earlier this week after the Bank of Japan was thought that he was disappointed not immediately Upsizing its asset-purchase program. This is despite the BOJ implement its ambitious policy still tie economy from years of stagnation.
But the Bears have not given up the yen, suspecting that the retirement of the Bank of Japan Governor Masaaki Shirakawa will soon be replaced by a much more dovish governor, who may then nominate any easing.
Until now, the yen rebound was fine and while some traders expect the correction may not be over, most of them believe that the dollar / yen will continue to rise over time.
"Dollar / yen looks vulnerable in the short term, although the long-term outlook remains for an attack by 100 over the next year," said Steven Barrow, an analyst at Standard Bank.
With the yen at the center of this week, the other currencies, mainly on the back burner. The euro appears to be a thin cut $ 1.3250/1.3400 trading range since the last spike higher on January 10. This is the last of $ 1.3315.
Traders, however, expect that the euro could still surpass the dollar of the European Central Bank more optimistic forecast for the euro area over the Fed's cautious stance on the U.S. economy.
ECB President Mario Draghi said on Tuesday that optimism, saying that the euro zone could start in 2013 with more confidence than last year. But he warned that it was up to the government to execute a block ahead withreforms.
Among commodity currencies, the main driver was the Canadian dollar, which fell after the Bank of Canada moved the date any increase in interest rates in part because of excess capacity in the economy andsoft inflation.
This saw the rise of the U.S. dollar to a two-month high of C $ 1,0005. It was last at C $ 0,9995. Aussie is much inferior to his Canadian counterpart, scaling 5-1/2 month high of C $ 1,0547. The New Zealand dollar rose to its highest level since 2007.
"We see continued growth risks to AUD / CAD above $ 1.0600 and NZD / CAD above $ 0.8400. At the same time, our preference to sell USD / CAD on rallies above parity, from $ 1.0050 first notable resistance," says Basil Serebryakov, strategist at BNP Paribas.
Generally, the demand for risky assets should remain buoyant with Europe looks better and immediate threat to the U.S. government reached its debt ceiling is removed at this point.
U.S. House of Representatives adopted a Republican plan to the federal government to keep borrowing money until mid-May, clearing it for a quick decision after top Senate Democrats and the White House approved it. Reuters.com
