{"id":5667,"date":"2016-09-16T16:20:49","date_gmt":"2016-09-16T20:20:49","guid":{"rendered":"http:\/\/www.thet3trader.com\/?p=5667"},"modified":"2016-09-16T16:20:49","modified_gmt":"2016-09-16T20:20:49","slug":"t3s-take-3-stocks-get-stuck-in-first-gear","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2016\/09\/16\/t3s-take-3-stocks-get-stuck-in-first-gear\/","title":{"rendered":"T3’s Take 3: Stocks Get Stuck in First Gear"},"content":{"rendered":"

Learn Dave Green's Trading Secrets<\/strong><\/p>\n

Click here to start speculating the SMART way…<\/a>
<\/strong><\/p>\n

1) Stuck in First Gear<\/strong><\/p>\n

Stocks were stuck in first gear today following a downturn in Europe overnight.<\/p>\n

European banks fell hard after Deutsche Bank (DB) said the Department of Justice is seeking $14 billion to settle a legal case related to mortgage-backed securities. Bloomberg Intelligence had estimated the settlement would be in the range of $4 – $8 billion.<\/p>\n

The S&P 500<\/strong> fell as low as 2131.20, but recovered some of its losses into the close and finished at 2139.09, down -0.4%.<\/p>\n

The Nasdaq outperformed due to strength in large-cap biotech names, notably Celgene<\/strong> (CELG), which reported positive study data.<\/p>\n

Crude oil declined again, sending energy shares down, with notable weakness in oil service.<\/p>\n

This morning, Intel<\/strong> (INTC) raised its third-quarter revenue and gross margin guidance on rebounding demand for PC\u2019s.<\/p>\n

Intel shares rose 3.0%, but failed to significantly lift the broader semiconductor universe.<\/p>\n

2) CPI Surprise!<\/strong><\/p>\n

US economic data has been deteriorating since the July 29<\/span><\/span> Q2\u00a0GDP report, which had some traders losing faith in the Fed\u2019s ability to hike rates this year.<\/p>\n

But the hawks got a small boost today with the better-than-expected August Consumer Price Index report, the last major economic data release before Tuesday\u2019s<\/span><\/span> Federal Reserve rate decision.<\/p>\n

The CPI rose 1.1% year-over-year, beating the 1.0%\u00a0consensus, while the core CPI, which excludes volatile food and energy prices, rose 2.3%.<\/p>\n

The report had traders upping their rate hike bets, and Fed funds futures now imply a 55% chance of a December rate hike, up from 50% earlier today.<\/p>\n

3) Traders Sell the Apple News<\/strong><\/p>\n

Apple\u2019s (AAPL) iPhone 7 went on sale today after a week of positive news, though they were not easy to find.<\/p>\n

In fact, demand is so strong that some iPhone models will not be delivered until November.<\/p>\n

Earlier this week, T-Mobile (TMUS) and Sprint (S) both said that iPhone pre-orders grew substantially from last year.<\/p>\n

 <\/p>\n

iPhone 7 reviews have been very positive, and meanwhile, the Samsung Galaxy Note 7 \u2013 a key iPhone 7 competitor — has been recalled due to exploding batteries. That certainly tipped the iPhone vs. Galaxy debate in Apple\u2019s favor.<\/p>\n

However, Apple shares saw a \u201csell the news\u201d reaction to the actual release today as traders locked in profits after 4 days of strong gains.<\/p>\n

Monday\u2019s<\/span><\/span> Trading Calendar<\/strong><\/p>\n

US Economics (Time Zone: EDT)<\/strong>

10:00<\/span><\/span> NAHB Housing Market Index (Sep): exp. 60 , prior 60

Global Economics<\/strong>

21:30<\/span><\/span> AUD Monetary Policy Meeting Minutes

Earnings<\/strong>

Before Open:

None of Significance

After Close:

None of Significance<\/p>\n","protected":false},"excerpt":{"rendered":"

Learn Dave Green’s Trading Secrets Click here to start speculating the SMART way… 1) Stuck in First Gear Stocks were stuck in first gear today following a downturn in Europe overnight. European banks fell hard after Deutsche Bank (DB) said the Department of Justice is seeking $14 billion to settle a legal case related to mortgage-backed securities. Bloomberg Intelligence had estimated the settlement would be in the range of $4 – $8 billion. The S&P 500 fell as low as 2131.20, but recovered some of its losses into the close and finished at 2139.09, down -0.4%. The Nasdaq outperformed due to strength in large-cap biotech names, notably Celgene (CELG), which reported positive study data. Crude oil declined again, sending energy shares down, with notable weakness in oil service. This morning, Intel (INTC) raised its third-quarter revenue and gross margin guidance on rebounding demand for PC\u2019s. Intel shares rose 3.0%, but failed to significantly lift the broader semiconductor universe. 2) CPI Surprise! US economic data has been deteriorating since the July 29 Q2\u00a0GDP report, which had some traders losing faith in the Fed\u2019s ability to hike rates this year. But the hawks got a small boost today with the better-than-expected August Consumer Price Index report, the last major economic data release before Tuesday\u2019s Federal Reserve rate decision. The CPI rose 1.1% year-over-year, beating the 1.0%\u00a0consensus, while the core CPI, which excludes volatile food and energy prices, rose 2.3%. The report had traders upping their rate hike bets, and Fed funds futures now imply a 55% chance of a December rate hike, up from 50% earlier today. 3) Traders Sell the Apple News Apple\u2019s (AAPL) iPhone 7 went on sale today after a week of positive news, though they were not easy to find. In fact, demand is so strong that some iPhone models will not be delivered until November. Earlier this week, T-Mobile (TMUS) and Sprint (S) both said that iPhone pre-orders grew substantially from last year.   iPhone 7 reviews have been very positive, and meanwhile, the Samsung Galaxy Note 7 \u2013 a key iPhone 7 competitor — has been recalled due to exploding batteries. That certainly tipped the iPhone vs. Galaxy debate in Apple\u2019s favor. However, Apple shares saw a \u201csell the news\u201d reaction to the actual release today as traders locked in profits after 4 days of strong gains. Monday\u2019s Trading Calendar US Economics (Time Zone: EDT) 10:00 NAHB Housing Market Index (Sep): exp. 60 , prior 60 Global Economics 21:30 AUD Monetary Policy Meeting Minutes Earnings Before Open: None of Significance After Close: None of Significance<\/p>\n","protected":false},"author":3,"featured_media":4093,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1],"tags":[71,72,189,8,107],"class_list":["post-5667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-uncategorized","tag-aapl","tag-apple","tag-daily-recap-article","tag-stocks","tag-take-3"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/5667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=5667"}],"version-history":[{"count":0,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/5667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/4093"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=5667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=5667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=5667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}