Best Month in a Year
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One great way to make binary options work to your advantage is to trade based on monthly and quarterly earnings reports. Options can be predicted to rise or fall shortly before these news releases. If you do the research you can capitalize on these movements in the market. But more on this strategy at a later posting. Now let’s concentrate on our monthly report.
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Stocks did better this month than they have in an entire year. Sixteen of the thirty DOW stocks ended higher at the end of July, including Home Depot (up 1.6% at $28.51) and Boeing (up 1.4% at $68.14). Intel (down 1.7% to $34.46) and Merck (down 1.7% to $34.46) ended lower than expected.
Stock Market Summary
DOW- ended at 10,466 points, rising 7.1% for the month. Earlier in the day the DOW fell almost 120 points, but it ended a point below the day’s opening. It ended with a fall of .01% for the day.
Nasdaq Composite Index– ended three points higher, at 2,255.
DAX- Germany’s DAX index rose .2%.
IBEX- Spain’s IBEX fell 1.2%.
Nikkei- Japan’s Nikkei stock average fell 1.6%.
S&P 500- ended at the same rate at 1,102, rising 6.9% for the month and .01% for the day.
News Events of the Month-
Technology News-
Research in Motion (RIMM) shares jumped 3.3% to $57.53 after announcing its plans to release a tablet competing with Apple’s iPad in November, the “Blackpad.” In addition, it will announce a rival to the iPhone next week.
Economic News-
The US government reported slow growth in the period of April to June, with a GDP of an annual rate of 2.4% in the 2nd quarter compared with the 2.5% predicted by economists.
Spain’s credit rating is likely to be cut, as it faces mounting unemployment at 20% and rising debt.
Congress voted on a $2 billion cash for clunkers program, a new program offering Americans a cash incentive for trading in gas guzzling automobile for fuel efficient alternatives. This program should help stimulate the automobile industry.
Currencies-
The dollar rose against the British pound and Euro but fell against the yen.
Savings and Consumer Spending-
Consumer sentiment for July rose to 67.8 and not the expected 66.5.
Commodity Market
Oil, gold, and copper all rose in price.
Gold- $13.30 to $1,181.70 per ounce.
Copper- up 2.15 cents to $3.3115 a pound, up 12% for July.
Oil- closed at $78.95, up 4.39% from last month.
Employment
Increased to 9.6% from 9.5% for last month for the US market.
Private employers added 90,000 jobs to the payroll, an improvement since June.
Sales and Manufacturing
Manufacturing activity slowed to its lowest level since December. Reports of Midwest manufacturing rose to 62.3 this month from 59.1 for last month.
Major Events of the Week
US stocks decrease after Bernanke testified to Congress and reported a “unusually uncertain” economic outlook. This week Obama signed the Wall Street Reform Bill, which calls for more government regulations for loans and financial products and the creation of a new agency, the Bureau of Consumer Financial Protection.
BP announced this week the successful capping of the oil leak and that no more oil being leaked into the Gulf. Shares in BP increased after the announcement, but a brewing storm in the Caribbean might reopen the leak.
A short look at the week’s closing:
Stock Market Summary
The Dow Jones Industrial average fell by 164 points at one point and closed at 10120.53
S&P Stock Index fell by 13.89 points to close at 1069.59
The Nasdaq fell by 35.16 points to close at 2,187.33 due to the drop in technology stocks.
Commodity Market
Oil dropped to below $78 a barrel
Currencies
Dollar rose against the Euro
Yen rose against the dollar
A Hungarian spokesman for Prime Minister Viktor Orban has announced last week that an impending economic default is possible given the current economic situation. This combined with past concern over other shaky economies, such as Portugal and Spain, caused increasing fears of the value of the Euro, which fell to a new low of 1.2050 against the dollar.
The spokesman, Peter Szijjarto, accused the past government of covering up lies and information. A detailed report of the Hungarian government’s fiscal plans.should soon be released.
The Daily Forex News reported today that in a Eurogroup meeting yesterday that Eurogroup head and Luxembourg Prime Minister Jean-Claude Junker was “not really concerned about Hungary” and emphasized that the situation was not at all comparable to the economic situation in Greece.
The Hungarian report on its fiscal budget should play a big part in investor confidence in the Euro, which will affect Euro prices.
Posted by Tamar | Posted in Uncategorized, promotions | Posted on 25-04-2010
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