Stocks lower but not by much
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.
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Published on: Friday, January 27, 2012
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