Traders finally got something exciting to trade on. No, it wasn’t the news out of the ECB where basically Mr. Draghi is indicating that Europe is ready to take the baton of quantitative easing from the U. S., slashing bank reserve rates to a negative interest rate in an attempt to get banks to lend (which would of course require businesses to borrow), and continuing to insist that the ECB will do “whatever necessary” to stimulate growth prospects in the Eurozone, possibly even asset purchases eventually. No, basically stocks did little after that was all announced. What got the bulls all excited was hedge fund manager David Tepper indicating, after last month’s words of caution, that he now feels better about things since Mr. Draghi came through as needed. Tepper’s green light led to a tasty 100 point Dow rally in late morning trading.
By the close, the Dow Jones Industrial Average was up 98 points to finish the day at 16,836. The S&P 500 was up 12 points to close at 1940. Gold was up $8 to trade at $1253 per ounce (a disappointing result for the gold bugs considering the additional central bank intervention), while oil was down $.08 to trade at $102.56 per barrel WTI.
Tomorrow we get the non-farm payroll number. The consensus estimate for new jobs having been created in May is 213,000. It will be interesting to see how the markets react to whatever the number is. It sure seems like the bulls are able to find a silver lining in any data point. We’ll let you know how the week finishes out tomorrow.
Have a nice evening everyone.