Daily Market Update – May 9, 2016 (Close)
There really isn’t too much in the way of economic news this week, but some of the important components of the GDP will be releasing their earnings reports this week and next.
With GDP estimated to be composed nearly 70% of consumer spending, it may be a big deal when the major national retailers begin to report their earnings.
Last week’s monthly sales data from The Limited cast a pall on retailers and many are talking about rising inventories and big sales as the winter was coming to its close.
With expectations already fairly low, it seems that people are looking for further disappointment.
The one thing that we have seen this earnings season is that when those lowered expectations aren’t met or when continued weak guidance is given, there isn’t a lot of forgiveness offered.
In the meantime, the futures trading in oil was higher, but stocks were seeing their early gains erode as the opening bell was approaching.
In a very positive note, even as the DJIA fell by 35 points and the S&P 500 actually added a point, they both did so while oil was completely turning around from its morning trading to see it close the day much, much lower.
But stocks didn’t follow.
With disappointing employment numbers and increasing oil prices, it’s hard to see where the good news is going to come from or where the FOMC is going to draw its data to warrant their acting on another interest rate increase.
With absolutely no trades last week, I at least had some dividends to fall back upon.
That’s not the case this week, so I was anxious to make some trades once the session got underway and, as expected, I went after volatility and liquidity, trying to make up for lack of quantity of trading.
At the moment, I would just like this monthly option cycle to come to an end, as I do have some expiring positions next week and that may give an opportunity to at least do something to generate some income., even as that stock took some punishment before the day was over.