By Markus Heitkoetter
Today we saw an impressive rally in the markets. The DOW finished green for the first time in 5 sessions, and the S&P had its biggest gain in a month.
Today’s move was largely due to optimism over the Greece debt issue.
A few reports on the potential progress helped fuel today’s optimism:
1) Angela Merkel, German’s Chancellor, said that her goal is to “keep Greece in the euro area.”
2) The European Central Bank (ECB) raised the emergency cash available to Greece banks.
3) A report that Germany was willing to compromise on Greece’s commitment to its economic reform (which was later denied).
But was this information really “rally” worthy? One would think that the report on a compromise was the most significant Greek news today…and the report was later denied!
In the end the S&P ended the day with a 25 point gain, with most of today’s rally occurring in the first 2 hours of the trading while European markets were still open. Today’s rally left the S&P with a 1.20% increase and close of 2105.20.
The DOW closed back above 18,000 after the DOW finished 236 points higher. With a 1.33% gain the DOW led the major indices and ended the day at 18000.40. Today’s move higher brought the DOW back into positive territory for the year.
And now the World Bank has chimed in…
First it was the IMF. Now it’s the World Bank that is suggesting that the Fed wait until next year to raise interest rates. World Bank’s Chief Economist said “A premature move by the Fed could cause the dollar to strengthen, which may slow the U.S. economy.”
With both the IMF and World Bank urging the Fed to wait on an interest rate increase, all eye’s are on next week’s FOMC Statement.
But we shouldn’t get too ahead of ourselves talking about next week…The economic calendar gets exciting tomorrow with Retail Sales, Unemployment Claims, and Import Prices at 8:30am ET, followed by Business Inventories at 10:00am ET.
Sears Holdings Corporation (SHLD) has been in a monster downtrend. Today SHLD ended 19.37% lower after today’s close of $29.52. In just 4 days the stock has lost approximately 1/3 of its value.
A PowerX Sell Signal on 8th Jun 2015. Today’s drop was just what PowerX traders were looking for after trading through a PowerX Profit Target at $31.70.