Well that’s a little better. We finally got ourselves a little bounce, and we certainly were overdue for it. After a sloppy start to the day, stocks reversed a losing hand as the morning wore on and by afternoon we found ourselves with some tasty gains (although we gave back 100 Dow points in the last hour of trading). What turned the tide? Perhaps comments from a voting FOMC official that the Fed’s desire to raise rates this year might be running into a few snags, or more likely, we got so oversold that a bounce of some sort was just due.
By the close, the Dow Jones Industrial Average was up 227 points to finish the day at 16,378. The S&P 500 was up 31 points to close at 1921. Gold was down $8 to trade at $1079 per ounce, while oil was up (yeah) $.63 to trade at $31.09 per barrel WTI.
If we are in a bear market, and we think we have been as you know, these sharp bounces will occur. Hopefully, it can be the start of a bottoming process, but bottoming is just that – a process. We had pretty good earnings from one major bank this morning, but earnings season really gets going next week. Again, have prices been adjusted enough at this point to warrant more than a one day bounce? Stay tuned.
Have a nice evening everyone.