Very good market news
by Peter Switzer
Don’t worry about the World Bank warnings — they’re nearly always wrong. Focus on the better news, which is accumulating. I especially like the S&P 500 index ending up over the psychologically important 1300-level, which the market has been struggling with for ages.
Helping matters and proving my point that the USA isn’t decoupled from Europe, good news on Greece also helped the market fire up. And on top of that, Goldman Sachs beat expectations, which is another good sign.
Stocks closed near highs of the session Wednesday with the S&P finishing at its highest level since July 2011, buoyed by an optimistic report on Greece, which added fuel to an earlier rally after a better-than-expected housing market report.
The S&P 500 index ended at 1308.04, up 14.37 points or a nice 1.11 per cent, while the Dow put on 96.88 points or 0.78 per cent to wind up at 12,578.95.
US bank stocks and miners did well with BHP-Billiton up three per cent at one stage and this augurs well for our market today.
Stocks added to gains after a report that the debt-ridden nation may reach an agreement with its private creditors by the end of the week.
The good Greek news said the country is close to settling with its private creditors. It better be true or the market will go into reverse. Also, the market seems to think that even if a default happens it would not spook investors!
By the way, not everyone trusts Greek good news stories and so there could be another kick for the market when the real story is released.
By the way, of the companies to report in the USA so far, Thomson Reuters says 49 per cent have come in better than expected. Meanwhile CNBC says the National Association of Home Builders/Wells Fargo builder sentiment index went to its highest level since June 2007. And industrial output rose at the best rate in a year.
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Published on: Thursday, January 19, 2012
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