Friends
The markets spent all day worrying about what is going to happen in tomorrow’s Spanish bond auction. That coupled with weakness in IBM, after what seemed to be a rather good earnings report (the stock had run up before the report, so a little “sell the news” is not unusual), helped to send stocks to negative territory for the first time this week. Yes, the volatility train has pulled away from the station. Welcome back (hopefully only temporarily) to 2011.
For the day, the Dow Jones Industrial Average was down 82 points to close at 13,032. The S&P 500 was down 5 points to finish the day at 1385. Gold was down $10 to trade near $1640 per ounce, while oil was down $1.53 to finish near $102.67 per barrel WTI. It would be good to see the S&P 500 stay above 1370 for the week, which may embolden the bulls to spark a more than one or two day rally. The Dow holding on to 13,000 wouldn’t hurt either.
Like IBM and Intel today, watch how stocks react to their earnings reports. What may seem like good news does not always make the shares rise in price, and that can be attributed to expectations and recent price activity. Here we go again, right? Is good news good news or is bad news good news….
Have a nice evening everyone.
