U.S. Stocks Little Changed as Tech Slump Tempers Data (Bloomberg)
U.S. stocks were little changed, after yesterday’s decline, as a slump in technology shares tempered signs that a drop in China’s factory output is easing and America’s housing market is improving. “The market was encouraged by signs of stabilization in China,” and better-than-expected U.S. home sales data indicating that the housing recovery remains on track, said Alan Gayle, a senior strategist at RidgeWorth Capital Management. Yet, the market is still struggling and weighing weak corporate profits growth, he added.
Bank of America Sued for Alleged Mortgage Fraud (CNNMoney)
The Justice Department is seeking $1 billion from Bank of America, alleging the bank committed fraud by selling defective mortgages from a program that bank insiders called “the Hustle.” The government alleges the program was “intentionally designed to process loans at high speed and without quality checkpoints,” generating thousands of fraudulent and otherwise defective residential mortgage loans.
The Federal Reserve Says The US Economy Is Growing Moderately (Business Insider)
Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level. Inflation recently picked up somewhat, reflecting higher energy prices. Longer-term inflation expectations have remained stable.
It was a rough week for global financial markets. The Dow Jones dropped 3.32%, while S&P 500 was down 2.87%. The MCSI Emerging Markets Index fell 2.15%.
In your Alpha Investor Letter portfolio, only homebuilder Lennar Corp (LEN) managed to eke out a gain, ending the week 1.15% higher. All of your other positions were down -- though none of them hit their stops.
Several of your positions also slipped below their 50-day moving aver
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: