Daily Investment Interpretations

February 8, 2011

2012-2-7: (Tuesday Night): The markets rose slightly today: Greek hopes stoke market; Bulls Recover for a W; All Eyes on Greece. The NASDAQ Composite climbed 2.09 (0.07%) to 2,904.08. The Dow added 33.07 points (0.26%) to 12,878.20; the S&P 500 gained 2.72 points (0.2%) to settle at 1,344.33. Oil ended at 98.71: Oil at best in a week on Greece, dollar; gold jumped to 1750: Gold gain fueled by Bernanke, Greece. The VIX rose 0.66 points to 17.76.
The key idea is that no matter what happens in Europe (within reason), the U. S. will continue to prosper as we make our way into a slow recovery. Of course, U. S. prosperity is at least somewhat dependent upon world prosperity, and might be vulnerable to Europe's miseries through a global slowdown.
Seasonally, the past few springs have been upbeat, followed by summer slumps and fall recoveries.

Marketwatch says:
Institutional buying on the upswing
Progress seen on Greek rescue
Consumer credit surges again in December (Christmas spending?)
Consumers arenít confident enough
Earnings will keep declining "In 2010, restocking drove growth. In 2011, private investment rebounded. But Andy Hicks says the consumer hasn't come to life. "

Weidner: Lessons for Europe in U.S. bailouts David Weidner argues that even though the U. S. had to make some unsavory choices in its public bailouts of banks, we took steps that Europe might want to emulate that prevented a general meltdown.
Michael Ashbaugh observes that Nasdaq sustains break to 11-year highs.

Schroeder: Soften austerity, adopt euro bonds German Chancellor Angela Merkel's predecessor, Gerhard Schroeder, recommends (1) that Europe go easy on austerity measures, since they're basically bleeding the sick patient, and (2) switch from national "sovereign" bonds to "Eurobonds" backed by the entire European Union.
Score one for Keynes ó and Obama This article compares the European austerity programs and their dire consequences with the Obama administration's not-enough-but-better-than-nothing stimulus program and the U. S.' gathering recovery.
Greek austerity meeting postponed until Wednesday
Mark Hulbert warns: The meaning of the Transportsí weakness.
Rex Nutting writes: Investors demanding larger U.S. deficits.
Irwin Kellner asks: Is glass half empty or half full? Dr. Kellner argues that the U. S. is balanced on a knife edge between a double-dip recession and a full-blown recovery. He's suggesting that, perhaps, the optimistic perception that the U. S. is reviving may lead to a full-blown, honest-to-Pete recovery.

State of the Markets articles include:
Technical Talk: The Trend Is Your Friend
Was January Meaningful?
New Demands, National Strike, Political Infighting Hold Up Greek Bailout Deal
Greek Government Drafting Agreement For Leaders' Approval
Drama In Greece Continues As Officials Scamble To Approve Austerity Demands
Germany's Industrial Production Falls in December
Coca-Cola Earnings Beat on Top and Bottom Lines

Market futures are neutral again tonight.