Friends
Buoyed by hopes that this evening’s GDP and Industrial Production numbers out of China will show improved growth and positive earnings reports from the few companies that have reported to date, stocks enjoyed a second day in a row of juicy gains. For the day the Dow Jones Industrial Average was up 181 points to finish at 12,986. The S&P 500 was up 18 points to close at 1387. Gold was up $17 to finish the day trading at $1677 per ounce, and oil was up almost $1 to finish trading near $103.66 per barrel WTI.
After the close we will get an earnings report from Google, and then tomorrow morning we’ll get reports from J. P. Morgan and Wells Fargo. These reports along with the news out of China should set the tone for tomorrow’s trading. As for today, it was nice to see the S&P 500 get back above 1370 and avoid major support at 1330. Also, we would like to see the Dow work its way back above 13,000. But because of the technical damage that had been done earlier in the week, we will need to see more confirmation from this move before we get too excited. Nevertheless, if the recent 5 day 4.5% pullback represents the correction that the bears have been hoping for(and nothing more), then we may be able to start building on the advance of the past two days. Company earnings reports will most likely dictate the action for the next two weeks, so it’s likely that we will have some volatility to deal with on a day to day basis.
We’ll let you know how the week finishes tomorrow.
Have a nice evening everyone.
