Stocks finished lower on Monday, though well off of their intra-day lows. Major indices started the session in the red due to a few global headwinds.
Portugal saw yields and credit-default-swaps spiking, which was not welcome news for markets. In Greece, the debt talks continued to drag, which lead investors to question Greece’s ability to finalize a deal with private bondholders. Meanwhile in China, the People’s Bank of China did not deliver a widely expected RRR cut, which also hurt stocks early on.Despite the negative headlines, stocks would only continue to sell off for about an hour before stabilizing. Once again, the bulls turned a potential flush downward into a strong intraday showing, paring losses throughout the day with no significant driver.
Major indices rallied for the majority of the day, and the S&P 500 finished ~12 points higher than its intraday low. Though all major indices finished in negative territory, the price action tells us that this rally may still have some upside potential (or at least that this current market isn’t going to just flush the way it did on numerous down-days in 2011).
Looking forward to this week, Tuesday through Thursday marks the heaviest reporting days of the earnings season. A particularly strong or poor showing from corporate America would likely push us out of this sideways consolidation phase one way or another.
Close Recap: S&P 500 -0.25%, NASDAQ -0.16%, DJIA -0.05%, Midcaps -0.48%.
Have a pleasant evening.
S&P 500 - Intraday
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S&P 500 - Last 12 Months
