Business News

Stocks lower but not by much

| More

by Peter Switzer

The Yanks were really getting excited, hoping to hit a high above 12,810.54, which hasn’t been seen since May 2008, but after a good start, it ended down 22 points at 12,734.63. But it really is only a big deal for media types and traders — though I think we’re getting into testing waters for a market that is up over 20 per cent since October.

For the record, the S&P 500 ended down 7.62 points to 1318.43.

Interestingly Wall Street has now been up four weeks in a row but there’s still one more day to go to complete the picture this week. This was not achieved in 2011!

Big news of the day was the Fed boss, Ben Bernanke, saying interest rates would not rise until 2014, which has to be a big stimulus for business. However, some traders thought it was a negative, saying the recovery is not as strong as thought or that it could falter.

On company news this week, Apple, Caterpillar and Starbucks did well but the latter was more negative with its outlook statements.

Economics-wise durable goods orders went up for a second month in a row in December, and leading indicators were positive, but jobless claims and new home sales were disappointing.

I think this market heads up for some time yet but Greece and the EU still hold the trump cards. Some smarties are selling stocks now and so there will be a few tests in coming weeks.

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.

Watch more from Peter on SWITZER TV.

Published on: Friday, January 27, 2012

The Switzer Super Report is a newsletter and website for self managed super funds. With exclusive commentary from Peter Switzer and Paul Rickard the Switzer Super Report will help you maximise your after tax investment returns and grow your DIY Super. Click here for a free trial or subscribe today.

Dow to reach 20,000 – can you believe it?

It’s not All Too Hard, it’s More Joyous!

Abbott deserves a Tony Award for that speech!

When do we dump stocks?

Abbott’s budget reply: is he really trapped?