Friends
Traders shook off the disappointing 2nd revision to 1st quarter GDP, and sent stocks higher today for a second day in a row of triple digit gains for the averages. After yesterday’s bevy of good economic numbers, today’s GDP revision seemed to be “old news” at this point. As it is, we are only two days away from the end of the second quarter, so looking forward makes more sense anyway. With regards to stocks, once the bond market settled down some (stopped falling at an alarming pace) traders seemed to focus on window dressing the end of the quarter. Now, I am not saying that yesterday’s economic news wasn’t worth feeling good about, but my guess is the adjustment phase will take more than a couple of trading sessions to play out.
Anyway, for the day, the Dow Jones Industrial Average was up 149 points to close at 14,909. The S&P 500 was up 15 points to finish the day at 1603. Gold continues to collapse with the precious metal falling another $51 to trade at $1223 per ounce, while oil was up $.07 to trade at $95.39 per barrel WTI.
It has been nice to see the bulls gather strength the past two sessions, after the bears had them on the run for a few days. As stated earlier, I certainly wouldn’t proclaim all is clear as it pertains to buying stocks. We surely have to be aware that anything uttered by Fed officials could move markets in a nanosecond. But it’s nice to see that just maybe there could begin to be a realization that good news is, indeed, good news, and that someday we won’t have to be afraid that good news will be met by a disruptive Fed reaction, and a selloff in stocks.
Have a nice evening everyone.
