Same Song, Different Day; Stocks Eke Out Another Small Gain
February 9, 2012
Stocks finished slightly higher on Thursday in another relatively quiet session of trading. Major indices opened the session gaining following news that an agreement on the Greek bailout deal had been made, and an improving Weekly Jobless Claims figure, which was down 15k this week.
Stocks sold off in early trading, much like they have every day this week. Headwinds included ECB Draghi’s less-than-optimistic language during his press conference regarding the Eurozone economy, citing ‘high uncertainty’, ‘downside risks to the economy’, and ‘[the economy] being very weak around the end of 2011’. There may have also been some technical selling around the July highs at 1353 on the S&P 500.
Thursday’s session followed the same pattern we’ve seen all week. Selling in the morning followed by a quick reversal and sustained rallying throughout the session.
However, it is interesting that the bulls did not make a significant push higher. All week stocks have been on the brink of pulling back amidst uncertainty surrounding the Greece deal not being finished, yet the bulls have found a way to push major indices back into green territory. Today, the deal is finally made, yet the same price action persisted, which might make a good argument that the play on the Greek deal was a “buy-the-rumor, sell the fact” scenario.
Whatever the case, Thursday was another relatively quiet session on low volume. Looking to Friday, we have a couple of macroeconomic reports and the University of Michigan Consumer Sentiment reading early on.
Close Recap: S&P 500 +0.15%, NASDAQ +0.39%, DJIA +0.05%, Midcaps +0.21%.
Have a pleasant evening.
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