Friends
Even with the continued concerns that Greece’s days in the Eurozone may be coming to an end, and the continued problems in Spain and Spanish banks, stocks staged a rather surprising rally today. Like a fighter who can take punch after punch, stocks shrugged off the rust from a 3 day weekend and rallied early and often. For the day, the Dow Jones Industrial Average was up 125 points to close at 12,580. The S&P 500 was up 14 points to finish the day at 1332. Gold was down almost $15 to trade at $1554 per ounce, and oil was virtually unchanged finishing the day at $90.75 per barrel WTI.
Remember, we have a lot of economic data to deal with this shortened week, with the most important being Friday’s jobs report. Perhaps, traders are simply becoming more at ease with the notion that the Fed will be there ready and willing should more monetary stimulus be necessary. The need could develop domestically with unemployment or housing numbers worsening, or more likely the stress will come from Europe and the never ending leverage and austerity story. Either way, it will be interesting to see who is willing to step in front of this daunting “wall of worry” that markets in the past have been known to climb.
Stay tuned. We’ll let you know how the week unfolds.
Have a nice evening everyone.
