FirstAlert[tm] July 20: Dow 9000?
Commentary
July 20, 2009 (FinancialWire) (By Genevieve Hawkins) — Wall Street bucked the summertime blues in a big way last week as Intel (NASDAQ: INTC) and Goldman Sachs (NYSE: GS) topped expectations, and the good mood may persist through next few sessions.
The Dow jumped 7.3%, while the S&P 500 rose 7.0% and the Nasdaq soared 7.4% on better than expected earnings and economic reports. Although the rally may signal a new leg up for the market, it is more likely that it also reflected short sellers being forced to unwind their positions quickly and as such is unsustainable.
For the coming week earnings reports will drive stocks as 143 companies on the S&P 500 report their quarterly numbers. Investors will also be listening to Bernanke’s testimony to Congress for clues about long term growth prospects for the US. A total solar eclipse that is falling over China and India midweek may indicate to more astrologically minded investors that a surprise development in Asia could affect the markets, possibly to the downside.
The Dow may be able to power through 9000 early in the week on optimism about a recovery, but it is unlikely that stocks will be able to stay that elevated for long.
The Investrend Economics Calendar lists Leading Indicators Index for June (10 a.m.), Treasury auctions 3&6-month bills (1 p.m.).
The Investrend Events Calendar showcases FNM, MHP at SourceMedia Best Practices in Loss Mitigation Conference; LM Shareholders Meeting.
The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session’s trading showed 25 advancers versus 25 decliners. Advancers were led by Amer Intl Group New (NYSE: AIG) up 6.04%. Decliners followed Gen Electric Co (NYSE: GE) down 6.05%.
Investrend Website of the Day: http://www.franchise.org/
Quote of the Day: “The only time a woman can really succeed in changing a man is when he is a baby.” Natalie Wood
Today is: National Hug Your Kid Day.
Happy Birthday: Hyacinthe Rigaud, Max Liebermann, Sir Edmund Hillary, Nelson Doubleday, Dame Diana Rigg, Natalie Wood, Carlos Santana.
Today in History: Pluto reached in 1618 its second most recent aphelion, the next of which occurred in 1866, with the next coming in 2113. French explorer Pierre Gaultier de Varennes et de la Vérendrye reached the western shore of Lake Michigan in1738. British Columbia joined the confederation of Canada in 1871. The United States Patent Office awarded the first patent for wireless telegraphy to Mahlon Loomis in 1872. Billboard magazine published its first “Music Popularity Chart” in 1940; the first number one song is Frank Sinatra’s “I’ll Never Smile Again.” Apollo Program: Apollo 11 landed on the Moon in 1969. Rookie golfer Ben Curtis, ranked 396th in the world, won the British Open in 2003, the first golfer to win a major golf tournament on his first try in more than ninety years.
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