Thursday, February 3, 2011
Stock Market Commentary:
Stocks ended relatively flat after geopolitical woes continued for a 10th day in Egypt and the latest economic and earnings data topped estimates. The fact that the major averages bounced back sharply earlier this week illustrates how strong this market actually is.
Jobless Claims And Service Index:
Before Thursday’s open, the Labor Department said jobless claims jumped 51,000 to 454,000 last week. In other news, factor orders rose +0.2% in December and the ISM’s service index rose to 59.4, topping the Street’s estimate. This was the fastest increase for the service index since August 2005. A slew of earnings came out without any major ground breaking headlines to report. At this point, all eyes are on Friday’s jobs report and the ongoing geopolitical turmoil in the Middle East.
Market Action- Market In Confirmed Rally; Week 23
It was encouraging to see the bulls show up and defend the major averages’ respective 50 DMA lines as this market proves resilient and simply refuses to go down. The market remains in a confirmed rally until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. However, it is important to note that stocks are a bit extended here and a pullback of some sort (back to the 50 DMA lines) would do wonders to restore the health of this bull market. If you are looking for specific high ranked ideas, please contact us for more information.