Daily Investment Interpretations

June 7, 2011

2011-6-7 (Tuesday Night): The markets rallied strongly today and then lost it all near the close, ending down slightly for the day: Stocks shed day's gains, Market Wrap: Late Fade Leads to Fifth Consecutive Loss. The NASDAQ Composite fell 1 points (-0.04%) to 2,701.56. The Dow drifted downward 19.15 points (-0.16%) to close at 12,070.81, while the S&P 500 slipped 1.23 points (-0.1%) to end at 1,284.94. Oil closed down at $99.09.; Gold ended at $1,544. The VIX dropped 0.42 to 18.17.
    Fed Chairmen Bernanke: No double dip. Chairman Bernanke sees jobs and growth picking up in the second half of this year: Bernanke: Economic Growth Subpar; Low Rates Still Needed. One question that comes to mind is that of whether the markets didn't like what Dr. Bernanke said this afternoon: Stocks tank after speech, and Don't bet on 'QE3,' Dave Callaway advises.
Later: That's what happened: Bernanke kills Wall Street's buzz.
    I think Fed Chairman Bernanke might be trying to pour oil on troubled waters.
TopStock Portfolios' David Moenning published this article this morning: Are We Scaring Ourselves?.  Could there be other behind-the-scenes steps the Fed can take to boost economic growth? With the federal budget still up for grabs, now might not be a politically savvy time to announce further government stimulus rograms. If things get worse later in the summer, Dr. Bernanke can always revisit the topic of additional stimulus.
    Consumer Credit Expands for Second Straight Month in April. There hasn't been a lot of coverage in the news about the softening of the economy. I suspect most people aren't aware yet that the unemployment rate has inched up again to 9.1% from 9%, or that the economy is slowing. However, consumer sentiment is falling.
    Saudi Arabia Upping Production Ahead of OPEC Meeting... I wonder if this is because of they perceive a gathering threat of a worldwide downturn.
    Market futures are slightly positive tonight.