Daily Investment Interpretations

Thursday, June 7, 2012

2012-6-7: (Thursday Night): The markets leaped today and then fell, to close mixed: Wall Street's rally fizzles; Stock rally fades as Bernanke kills stimulus buzz. The NASDAQ Composite closed down 13.70 points (-0.48%) to end at 2,731.02. The Dow added 0.14 points (-0.01%) to close at  12,460.96; the S&P 500 advanced 7.32 points (0.57%) to settle at 1,314.99. Oil ended the day at 83.01: Oil ends higher, but supply data cap gains; gold logged off at 1590: Gold falls after Bernanke, China rate cut. The VIX dropped 0.44 to 21.72.
    "Dow steps back from an earlier triple-digit advance while Nasdaq and S&P see day's gains vanish."
    "U.S. stocks ended mixed Thursday, trimming gains from earlier in the day, as comments from Ben Bernanke tempered hopes for immediate stimulus by the Federal Reserve. More".
    The markets were looking for follow-through today and they didn't get it. Looking at the charts, I would expect further market erosion tomorrow. In our headline-driven market environment, I'd want to be in cash in case any wicked surprises show up over the weekend.

    Marketwatch says: 
    Fed keeps its guard up.
    Fed's Fisher: China must open financial sector.  
    30-year mortgage at 3.67%  
    Jobless claims fall  
    Todd Harrison writes that Deflation is elephant in room.  
    China's central bank cuts interest rates  
    Rate cuts across the globe.
    Germany and France can’t afford euro-zone bailout  
    Fitch cuts Spain credit rating to BBB  
    Kevin Marder gives us 3 reasons to like this rally
    David Callaway avers that Obama’s following me; and the bull is back  
    Darrell Delamaide writes that it's Time to start throwing money at euro crisis  
    
    State of the Markets articles include:   
    Looking Ahead to Friday's Market  
    Technical Talk: Bulls Looking For Follow-Through  
    Bernanke Says Fed Stands Ready if Economy Threatened "Fed Chairman Ben Bernanke delivered testimony on Capitol Hill saying that the Federal Reserve stands ready to help protect the economy and the financial system if... ... Read More »"
    Can Hope Continue To Prevail?  "After the near 10% correction (the S&P 500 fell -9.936% on a closing basis to be exact) that occurred from April 1 through Friday, it is safe to say that there wasn't a whole lot of hope in the market. No, as of Monday morning, reality had become the dominant force. As in the reality that almost all of the economic reports in the U.S. had come in WTE (weaker than expected). As in China's economy was no longer growing at a 10% rate. And as in the reality that there wasn't going to be ... Read More »" 
    Bloomberg Consumer Comfort Index Improves  
    Report: Spanish Banks Will Need 40 Billion Capital Infusion
    Spanish Bond Auction Raises Maximum  
    EU Says No Bank Rescue Plan For Spain in Works    
    
    Market futures are modestly (~⅓ %) lower tonight.