Despite a disastrous earnings report from IBM, which weighed heavily on the Dow, stocks actually had a pretty good day today. Maybe it’s because the deleveraging of hedge funds is coming to an end (thanks to the margin clerks), or the hope of more help from the Fed (although might be seen as desperation), or perhaps the good news that no one else in America turned up with Ebola over the weekend. Regardless, the bulls seem encouraged by Friday’s rally.
By the close, the Dow Jones Industrial Average was up 19 points to finish the day at 16,399. The S&P 500 was up 17 points to close at 1904. Gold was up $7 to trade at $1246 per ounce, while oil was up $.16 to trade at $82.91 per barrel WTI.
Was that it? Is the downturn over? Well, it’s way too early to say that. A lot of technical damage was done on the way down, as previous support levels now become resistance as the bulls try to regroup. We will get a lot of earnings reports this week as some 130 of the S&P 500 companies report this week. In addition we get a lot of economic data this week including Existing Home Sales, CPI, Jobless Claims, Leading Indicators and New Home Sales. The next Fed meeting begins next Tuesday the 28th. Market participants will be looking forward to that one. Let’s see how this week goes first.
Have a nice evening everyone.