Daily Investment Interpretations

April 21, 2011

2011-4-21 (Thursday Night): The markets climbed again today on positive earnings reports and upbeat forecasts: Bulls have Good Thursday, Leading indicators up. The NASDAQ Composite closed up 17.64 points (0.63%) at 2,820.16. The Dow added 52.45 points (0.42%) to close at 12,505.99 (a new high for the year), while the S&P 500 jumped 7.02 points (0.53%) to close at: 1,337.38. Oil stayed put at $112.33 (Obama: Panel to monitor 'speculators' on gas), while Gold slipped to $1,505. The VIX fell 0.38 to  14.69.  
    There was bad news mixed with the good news today. Weekly jobs claims fell, but not as much as they were expected to fall: Weekly Jobless Claims Fall 13,000 But Above Expectations. The Philadelphia Fed manufacturing index was only up 18.5 versus an expected value of 35.5: Economic Update: Philadelphia Fed Index. Also, housing prices fell more than expected in February: Housing Update: House Price Index. Finally, a Treasury auction of 5-year TIPS (Treasury Inflation-Protected Securities) sold at a negative interest rate of 0.18% today: What it means that TIPS yields are negative. The reason is that the buyers of these TIPS believe that inflation will average more than 2.35% over the next five years
   This article, It's Baaaaack!, refers to the fact that suddenly, the "risk trade" is back on. 
   Only the Dow broke out to new highs today. Meanwhile, the S&P is less than 7 points away from surpassing its February intra-day high of 1,344.
    Market futures are neutral tonight. (Some backing and filling wouldn't be a surprise, given the rapid run-ups over the past three days.)