Down, but positive signs
by Peter Switzer
It was a negative one for Wall Street but we’re still seeing a market that’s resisting really going higher but there’s no real desire to sell-off as well.
The Dow was down 136 points at the lowest levels of the day but the index ended down only 69.65 points to 12,964.1. It’s still struggling with the psychologically important level of 13,000.
The big drivers of the market were a 3.44 per cent fall in gorilla stock Apple, which can have a significant influence on the Dow. There was also some more disappointing economic numbers that didn’t help optimism and the Spanish bond yield was successful but the yield was around six per cent, which is expensive.
The S&P 500 was down 8.22 points, or 0.59 per cent, to 1376.92 but I can see some pretty good reporting news from US companies with Microsoft both beating on earnings as well as revenue, which helps me retain my overall optimistic stance on stocks this year.
On the economy, it makes me a little less positive. Jobless claims are starting to rise while existing home sales fell and the Philadelphia Fed index of business conditions for April came in at 8.5, which was worse than expected.
However, on the plus side, leading indicators touched its highest level in nearly four years!
All up, while we’re seeing some worrying negatives, the positives are still emerging and I like that kind of thing.
Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
Published on: Friday, April 20, 2012
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