1 December 2020
1300 794 893
Subscribe

Inside Markets

Inside Markets

Switzer Daily
19 June 2009

Despite waking up to an ABC radio report telling me that US earnings reports this week had not been good, I found this summary on the CNBC website just after the closing bell on Wall Street:

“Stocks pulled off a gain after a wobbly session Thursday as banks rose and some better-than-expected earnings helped offset gloomy economic data.”

As Franklin D. Roosevelt once said: “All we have to fear is fear itself,” but I would add “and fear spread by the media.” As regular readers know, I expect a pullback on the stock market, but I don’t think we will go to the March lows. However, I can’t stand those who simply search for the negative for the sake of a news headline.

The Dow Jones was up 70 points or 0.9% to 7,956.
 
The Nasdaq rose 6 points to 1,652.
 
The S&P 500 added 6 points or 1% to 851.

The real test for the market will come if there’s a bad economic number or the stress tests on the banks due in early May spook the market. Given the big 20% plus rise, some profit taking has to be expected.

I loved this from the CNBC website: “We need about two to four weeks to recharge the batteries of the market … then we’ll be ready for the next leg higher,” said Paul Schatz, president of Heritage Capital.

In economic news, existing-home sales dropped 3%, which was less than expected, and the four-week moving average for initial jobless claims rise declined slightly.

By the way, as CNBC argued — most of the earnings of the past two days came in better than expected, which helped curb stocks' losses somewhat.

I found it interesting that Johnson & Johnson fell even as it raised its dividend, which could indicate that a great, defensive stock is losing out to more cyclical stocks.

The Oz dollar is up to 71.52 US cents.
 
Have a good weekend,

Peter 

Click here to subscribe to the Switzer TV channel on YouTube and keep up to date with all of our shows.

Comments
Get the latest financial, business, and political expert commentary delivered to your inbox.

When you sign up, we will never give away or sell or barter or trade your email address.

And you can unsubscribe at any time!
Subscribe
1300 794 893
© 2006-2020 Switzer. All Rights Reserved. Australian Financial Services Licence Number 286531. 
homephoneenvelopedollargraduation-cap linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram