Daily Investment Interpretations
July 22, 2010
Stock markets reached for the sky today after good earnings reports and
improved outlook statements from both home and abroad: Blue chips leap 200,
Economic data power Europe surge.
The NASDAQ Composite jumped 58.56
to finish at 2245.89. The Dow gained 201.77
to close at
and the S&P 500
to end at 1,093.67. Oil ended at $79.05 a barrel,
closed at $1,195. The VIX fell 1.01
My investment advisory service has underscored its existing "buy" recommendation. Of course, it will take follow-through and more than one day to set the stock market on an upward trajectory. And a continuing recovery would fly in the face of many a pundit.
In Ben we trust. What this article argues is that Ben Bernanke's remark about an unusually uncertain outlook for the economy belies the calm assurances that Fed officials have given that the recovery is on track, The article avers that traders reacted to this surprise yesterday, driving down the equity indices.
Dr. Bernanke reaffirmed his forecast that there won't be a double-dip ahead, and that GDP growth for 2010 will average 3% to 3½ %, and for 2011, will run between 4% and 4½ %.
Double-dip recession? Not so fast. This article claims that April saw the end of the first, rapid-rebound phase of the recovery , and a shift into the second, slower-growth phase. The article also suggests that the low interest rates on Treasury bonds may lubricate the recovery by encouraging business investment.
Stock market futures are neutral tonight.