t******g
发帖数: 462 | 1 Wall St Week Ahead: The market is oversold, but major signs say "sell"
(Reuters) - Normally a big decline would set up Wall Street for a technical
rebound. But that may not be the case next week, even after the market
posted its worst weekly loss for the year and the S&P fell for six straight
sessions.
With the corporate earnings season drawing to an end and recent U.S.
economic data raising doubts about the pace of growth, the S&P 500, which is
down 7.3 percent so far in May, could decline further next week as concerns
about the financial health of Europe persist.
"What has changed in the world since April? We went from hearing a constant
refrain that the world is awash in money and markets must go higher to
hearing nobody wants to take any risk. ... All in a week," said Peter
Cecchini, global head of institutional equity derivatives at Cantor
Fitzgerald & Co in New York.
The S&P 500 fell 4.3 percent for the week, its steepest weekly decline this
year, and closed below 1,300 for the first time in four months.
The hotly awaited market debut of Facebook on Friday was marred by
technology glitches on the Nasdaq in sending messages back to the brokerages
that handled orders of Facebook Inc (FB.O) for individual, or "retail,"
investors. Those problems rekindled fears about the market's electronic
trading system and caused some investors to stay away from equities.
Weighing on sentiment is a growing sense among investors that the euro zone
debt crisis is nearing new heights, fueled by fears of the potential for a
Greek euro exit and the deteriorating health of the Spanish banking system.
Solid corporate earnings and upbeat U.S. economic indicators had fueled the
rally in U.S. stocks, offsetting jitters over Europe. But with earnings
almost out of the way and data starting to disappoint, investors have
shifted their focus back to headlines out of Europe.
Leaders of the Group of 8 major industrial economies meet this weekend to
try to tackle the financial crisis in Europe. U.S. President Barack Obama,
the G8 host, has urged European leaders repeatedly to do more to stimulate
growth, fearing contagion from the euro crisis that could hurt the U.S.
economy and his chances of re-election in November.
"The market is extremely oversold. Nonetheless, all major indicators remain
on sell signals," said Larry McMillan, president of options research firm
McMillan Analysis Corp, in a report on Friday.
"We expect a powerful but short-lived rally should be coming soon. But at
this point, barring some major shifts in our indicators, it may only be a
rally in a larger down-trending market," McMillian said.
THE FACEBOOK EFFECT
Facebook, the No. 1 online social network, disappointed investors with a
tepid market debut on Friday. Shares rose a scant 0.6 percent - nowhere near
expectations for double-digit gains on the first trading day - and the day
was marred by technical problems due to huge order volume. The stock closed
at $38.23 after falling as low as $38, its initial offer price.
The disappointing debut curbed investors' appetite for other social media
stocks. Hardest hit was Zynga Inc (ZNGA.O), which closed down 13.4 percent
to $7.16 after falling as low as $6.40. The stock was temporarily halted
twice due to sudden declines.
LinkedIn (LNKD.N) shares fell 5.7 percent to $99.02, and Groupon (GRPN.O)
fell 6.7 percent to $11.58. Zynga and Groupon, both of which went public
late last year, are also trading below their IPO prices.
Despite the disappointing market debut and the weak performance of social
media stocks, market participants are still optimistic about Facebook going
forward.
"In any brand new area, social media in this case, most are going to be
losers and only some are going to be winners. Yes, the IPO was disappointing
, but Facebook is clearly the winner here and others aren't," said Randy
Warren, chief investment strategist at Warren Financial Service.
Next week's economic data includes April's existing home sales on Tuesday at
10 a.m. Existing home sales are forecast at a 4.60 million-unit annual, up
from 4.48 million in March.
New homes sales figures are due on Wednesday at 10 a.m. April's new home
sales are also expected to post an increase, gaining about 7,000 units over
a 328,000-unit annual rate in March.
Initial jobless claims and durable goods orders will be published on
Thursday at 8:30 a.m. Consumer sentiment is due at 9:55 a.m. on Friday.
For the week, the Dow is off 3.5 percent and the Nasdaq is down 5.3 percent. | t**e
发帖数: 2379 | 2 如果媒体真的开始铺天盖地的喊空的话，还是有加剧市场恐慌的作用的。 |
|
