The stock market moved mostly sideways today without much economic data or major stories on the break today. The market opened slightly lower and traded in a thirty point range most of the day to end in the red. The large story of the day that lingered over the market revolved around Europe and fears over the bloc’s inability to maintain low debt and improve growth. The financial leaders from the 16-country EU-bloc gathered to try to address a way to stabilize the bloc’s economic problems. Yet, fears of more problems in Italy, Spain, Portugal, Hungary, and other nations is growing. At the same rate, the US economy was bolstered by comments from Bernanke that the Fed is prepared to buy $600 billion Treasury bonds if necessary in order to boost economic growth. The two stories weighed against one another, causing the market to trade sideways.
The Dow finished down almost 20 The Nasdaq finished up 3.5. The S&P 500 finished down 1.5. Gold finished up 20.
There was a major lack of economic data and news out today. Goldman Sachs commented that they are bullish on the US economy, and think 2011 will be another year of gains for the market. The financial institution thinks the economy will grow 4%, but gains will not be substantial as investor fears should continue to be maintained. Additionally, it appears that for the time being Washington will not be able to cut any taxes as Obama has to make successions to the new powerful Republicans. Right now, The Oxen Group is bullish on the USA’s economy. We are seeing a lot of positive things going on here, and we continue to be bogged down by outside forces and stories. These price in much smaller than US problems, and with most of them into the figures, a lot of green could be ahead.
On the docket for tomorrow, we have same-store sales for retail and the Redbook weekly measure of store sales. Other than that, we have consumer credit at 3 PM. Nothing too big as far as economic data. There will probably be something out of Europe as well on their decision as to what to do for
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