Friends
Of course we continue to wait for a deal in Greece, and of course it is delayed another day. Let’s move on. After an early morning selloff (Dow down about 50 points) stocks staged a midday rally and by the close the Dow Jones Industrial Average was up 33 points to close at 12,878. The S&P 500 was up more than 2 points to finish the day at 1347 (still trying to get through 1350). Gold was up $23 to close near $1748 and oil was up $1.85 to finish near $98.77 per barrel WTI.
On the earnings front, we continue to get a mixed picture as many companies seem to now be struggling to extend the growth that they have experienced over the past year and a half. Last year with traders focused on the macro environment, good earnings reports often failed to move stocks and often were met with selling. This quarter, we have seen very average earnings reports, but traders seem to be brushing aside the disappointment and driving stocks higher, regardless of the macro situation. We have had every opportunity to sell off (continued European worries, over bought technical conditions, lukewarm earnings, a meddling Central Bank, inept politicians), but stocks have maintained a stubbornly positive stance.
We will see if stocks can continue to confound the bears and push higher, but as last year taught us, a pullback can always be just minutes away. In the meantime this somewhat sideways backing and filling can be constructive. Let’s see how the week develops.
Have a nice evening everyone.
