Friends
Well, we had a rally for most of the day, but further disappointment out of Greece contributed to stocks giving back all of their earlier gains that had the Dow up 130 points early in the morning. The Dow Jones Industrial Average finished the day up a meager 7 points and the S&P 500 ended the day in the red, down 2 points to close at 1202. Gold spent the day in positive territory up $28 near the close, and oil was up more that $1 to trade near $87.
Early in the morning stocks had shrugged off the downgrade of Italian debt and had focused on the hope of something good coming out of Greece. As that hope wore off in the afternoon, traders will now be focused on the second day of the 2-day Fed meeting tomorrow. We have expressed the opinion, of course, that the Fed should just leave things alone, but it sure seems like Dr. Bernanke has trouble doing that.
We’ll see if the Fed can pull a rabbit out of its hat tomorrow, but short of that, let’s hope expectations have not gotten too high. We’ll let you know how it plays out.
Have a nice evening everyone.
