Friends
Once again, we get in on Monday morning and it’s all about Greece. This story seems to never end. With the clock ticking (Greece runs out of money by the end of the month), and little coming from this weekend’s meetings, stocks took a header this morning with the Dow dropping over 250 points early in the trading session. By early afternoon, rumors of some resolution, again, started to swirl and stocks recovered some of their losses with the Dow finishing the day down 108 points and the S&P 500 down 11.92 points to close at 1204.
With the dollar up, gold had a difficult day down about $32 late in the day to around $1782, and oil was down more than $2 trading near $85.74. It was a “risk off” type of day for commodities as the dollar rose and fears of slowing economies permeated the trading floors.
Apple was the big winner, advancing over $11 to close at a new high right at $412. Other tech names found some support today also, with energy and industrials finding themselves on the short end of the stick.
Traders will be keeping an eye on the two-day Fed meeting which starts tomorrow. We’ll be waiting for confirmation that the Fed wants to “do the twist” where they will buy longer dated maturities and sell shorter ones, possibly flattening the yield curve even further. Of course, this would make it even more difficult for the banks to make money. The 10 year Treasury note traded at a yield of 1.95% today. Wow! The five-year note is trading at .84%. You can’t even get 1% for a five-year commitment!
We’ll keep an eye on the Fed and these markets and let you know how things play out over the next couple of days.
Have a nice evening everyone.
