Friends
Market participants seemed to be content to wait on the plethora of earnings releases that we will receive this week, as well as testimony of Fed Chairman Bernanke before the House on Wednesday and the Senate on Thursday. On the economic front the Retail Sales release this morning was somewhat disappointing and continues to add to the confusing picture recent economic data is painting. We’ve been asking where is the recovery that the stock market has been predicting?
As for stocks, the Dow Jones Industrial Average was up 20 points to finish the day at 15,484. The S&P 500 was up 2 points to close at 1682. Gold was up $6 to trade at $1283 per ounce, while oil was up $.18 to trade at $106.50 per barrel WTI. With stocks trading at all-time highs we expect to see economic follow through soon. The Fed recently indicated that they too expect the recovery to strengthen.
We’ll keep an eye out for that recovery, and in the meantime, we’ll monitor earnings releases during the week as well as Dr. Bernanke’s testimony. Stocks are signaling a wonderful pickup in economic activity soon, or… Well, we’ll just hope for the economic recovery that stocks and the Fed are predicting. Don’t get me wrong, we want higher prices for stocks, but of course, we would like the economy and corporate earnings to justify those prices. Stock prices buoyed by an overflowing punch bowl make us a little tentative.
Have a nice evening everyone.
