Stocks finally bounced a bit today, a “dead cat” bounce perhaps, but a bounce nonetheless. After spending a short time in negative territory, stocks found their footing and despite some weakness early in the 2:00 hour, the bulls were able to hold onto earlier gains. Corrections are often marked by failed rallies, so we’ll keep a close eye on the action tomorrow to see if the bulls can muster any follow through.
As it was, by the close the Dow Jones Industrial Average was up 72 points to finish the day at 15,445. The S&P 500 was up 13 points to close at 1755. Gold was down $5 to trade at $1254 per ounce, while oil was up $.97 to trade at $97.40 per barrel WTI.
Earnings season has been characterized by reactions to expectations. We’ve seen some stocks rally even when the earnings report seemed lackluster at best (see YUM brands today), and we’ve seen some stocks fall after meeting or beating analyst’s estimates. We were wondering aloud as earnings season began whether stocks were accurately priced, and I think the evidence is in that in many cases they were not.
Remember, Friday is the all-important jobs number and we’ll get more earnings reports as the week goes on. Let’s see if the bulls can build on today’s rally.
Have a nice evening everyone.