TUESDAY 9/2/14; ISM Mfg Index; US Markets Reopen After Holiday; SPX and TRAN Print New All-Time Highs; COMPQ Prints New 14-1/2 Year High

The dollar/yen continues running higher (weaker yen stronger dollar) catapulting the NIKK +1.2% higher a seven-month high. Japanese bonus and pay data are up to 17-year highs creating positivity. Real wages, however, factoring in all economic conditions, remains weak and lower. Japanese exporters such as Nintendo and Olympus run higher due to the weaker yen. PM Abe will a






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nd is bludgeoned -30%. Conn says consumers that sign up for loans for televisions and refrigerators are falling further behind in paying bills. The dollar/yen takes out the 105 level and stocks run higher on the weak yen. WTIC drops to a 93 handle as oil, gold and commodities are slammed hard on the fast-rising dollar.

DNKN gains +0.4% as it opens the first donut shop in southern California with wider expansion plans. ACAD gains +11% on encouraging Parkinson’s drug results. The dollar stores are all up between +0.5% and +1%. The blue chips such as BA, HD, INTC, CVX and XOM lead from -1% to -2% lower. Computer hackers break into HD security systems stealing credit card data and information reminiscent of the TGT cyber attack. HD drops -2%. WTIC crude oil loses the 93 level and prints a 92 handle.

At 1:40 PM, tragically, a video is posted to the internet showing the beheading of the second American journalist, Steven Sotloff. That poor soul knew he was a dead man over the last two weeks since he was shown in an orange jump suit at the end of the previous video when James Foley was beheaded. The same British Islamic militant “Jihadi John” is suspected of performing the murder. At the end of the horrific video, an image of British citizen David Haines is shown in orange. ISIS tells the UK that Haines will be murdered if the UK joins the coalition of the West. President Obama is silent. 350 additional troops are en route to Baghdad to help defend the city from ISIS. The US troops and personnel total over 1K in Iraq and increasing. The stock market prints the lows of the day and recovers. News sources confirm that President Obama was regularly briefed concerning the dangers of ISIS radicals for one year but he sat on his hands.

The SPX ends the session down one point to 2002. The Dow loses 31 points, -02%, to 17068. The COMPQ gains 18 points, +0.4%, to 4598.19, printing a new 14-1/2 year record closing high and new 14-1/2 year intraday high at 4598.64 both only a hair from 4.6K. AAPL jumps +0.8% as traders chase into Apple ahead of the new product releases days away and ignoring the cyber attack on the iCloud. The Nasdaq is pushed higher with the Apple joy. The RUT is up 5 points, +0.4%, to 1179, continuing to lag the broad market over the last few months.

Trannies catapult higher due to the falling oil price (lower fuel costs for airplanes, trucks, and trains). TRAN is up +1.3% printing a new all-time closing high at 8516.25 and new all-time intraday high at 8519.64. The Dow Industirals will need to print new all-time highs from a Dow Theory perspective to prove that more stock market upside is on the way. WTIC crude oil plummets -2.7% finishing at 93.25. Brent collapses to 100.77. Natty gas plummets -4.6% to 3.89. Gold loses22 bucks, -1.7%, to 1266. Silver also loses -1.7% dropping to 19.18.

After the closing bell, HD recovers +0.7% in AH trading. GWRE pops +9% after robust earnings. Personal care products company HELE cuts sales forecasts and plummets -10%. CNQR catapults +20% on news that SAP and Oracle may purchase the software company. NCLH cruises lower after announcing plans to buy Prestige Cruises International for $3 billion. WTSL trades flat after the Wet Seal CEO resigns.

AAPL claims that the iCloud was not compromised with the cyber attack of celebrity photos and instead says passwords were used as the entry point to systems. However, Apple says a software fix is provided to remedy a breach of the system so why is a fix needed if the cloud was not the problem? AAPL obviously wants to maintain the perception of a safe and secure cloud platform and sweeps t he problem under the rug while providing limited information.

Several commercial airliners are missing from Tripoli Airport in Libya. The facility was taken over by Islamist militants after which the planes disappeared. Fears ate increasing that a suicide airplane attack, like 9-11 in the US, will occur in Europe, the US or other Western nations.