Friends
All day long we got rumors about deals being made over the debt situation, only to be followed up by denials from both the White House and John Boehner’s office. In the meantime, stock traders want to believe that eventually one of these rumors will be true, and seem to want to get a jump on the situation with the Dow ending the day 152 points higher. The S&P 500 closed above 1343 and is getting close to the upper end of our 1300 to 1350 trading range.
After the close, Microsoft added to the long list of earnings this week with a nice report. Tech companies, for the most part, have delivered very nice earnings this quarter led of course by Apple and Google. Price action after the reports has been mixed, but not unusual. We often note that sometimes stocks rally into the earnings and then sell off on the news. Then again, there are times when the earnings catch traders by surprise which was the case with Google.
We get reports from important industrial companies like Honeywell, GE and Caterpillar tomorrow, which should set the tone in early trading. We’ll keep an eye on the reports and the political rumors and check in with you tomorrow.
Have a nice evening everyone.
