Friends
The combination of some disappointing earnings and anticipated disappointment in the meetings in Europe tomorrow sent stocks down today with the Dow Jones Industrial Average down 207 points for the day and the S&P 500 down 25 points to close at 1229. Gold was up a whopping $53 to close near the $1705 area and oil continued to churn higher about $1.26 to close above $92.53.
The reality that the Euro crisis will not actually be solved tomorrow set in early today and even though gold and commodities were up, traders sold stocks all day long. Also, earnings reports from MMM and Cummins Engines disappointed traders banking on continued good news out of the industrial sector, and after the close, Amazon had a surprisingly awful earnings report. After trading right into major resistance, the S&P now has fallen back to the 1230 support level. The bulls will want to see the S&P stay north of 1200 and regroup for a new assault at that 1257 number. The bears are hoping the Eurozone worries will provide plenty of momentum to the downside.
We’ll see how things go at the meetings in Europe tomorrow, but we are not counting on any miracles. But any clarity at all may help stocks regain their footing for the rest of the month, which has been good so far.
Have a nice evening everyone.
