Friends
As traders tried to absorb the likely consequences of the Fed’s actions (statements) yesterday, we got a lot of economic and earnings news today. On the economic front, we got a better than expected durable goods report and a less than stellar housing number. On the jobs front, the first time unemployment claims number was back up slightly to 377,000 this week, but still well below the 400,000 number that created such a barrier most of last year.
On the earnings front, we continue to get a blurry picture with a few standouts mixed in. Today’s hero was Caterpillar which delivered an earnings report second only to Apple in terms of upside surprise. The big equipment maker’s numbers stood out in every way. Summarizing the earnings picture overall, I would say that telecom, pharmaceuticals and staples have been challenging but ok. On the other hand, technology and some of the industrials have delivered surprisingly good numbers considering the slow global economy. It is the type of earnings season that you can color either way depending on which way you are leaning. There is something in there for the bulls and the bears.
The markets were noncommittal, with stocks rallying early and then losing steam all afternoon. When all was said and done, the Dow Jones Industrial Average finished the day down 22 points to close at 12,734. The S&P 500 was down 7 points to finish the day at 1318. Gold, still getting a spark from the Fed’s endless zero interest rate policy, was up another $21 to close near $1721. Oil continues to hover around $100 per barrel WTI.
We’ll see how the week finishes out tomorrow and how the S&P looks on a technical basis.
Have a nice evening everyone.
