Closing Market Commentary For 07-01-2014
A slow, low volume session that produced questionable new record highs for the DOW, SP500 and the $RUT. The DOW and SP500 also had new historic closing highs while the $RUT closed below the March, 2014 high closing of 1208.65.
By 4 pm the averages were solidly in the green and many bulls were in the party mode once again as nervous investors were wondering if they should by tickets on the bull train leaving the station.
The likelihood of the markets opening up tomorrow morning are good, but the session out look is not as promising with only low level financial reporting in the morning. Factory Orders reports in at 10 am and could have a positive effect if the numbers are higher than the last report. The ADO Employment Change is expecting 205K increase and will have to be better, but not expected and that might dampen market euphoria among the bulls.
In the article below, the author points out that the stock market might be ‘suffering’ from euphoria of the continued market highs, but right now, there is nowhere else for investors to go for safer investments. But caution and a little care might be in order anyway.
Startling news for investors, Yellen and Congress
Analysis: The bank for central banks says current monetary policies are outdated
Although near-zero rates are no longer effective in rallying the economy, they have sent investors into equities.
Last week’s dismal gross domestic product report, which showed a contraction of 2.9%, steeper than an earlier reading of minus 1%.
The real global economic recovery has been weak, with growth driven by emerging-market economies
Governments should not only try to reduce budget deficits but also attempt to encourage private-sector finance of infrastructure projects.
Central banks should wind down expansionary monetary policy without delay.
Congress needs to take the burden off Chairwoman Yellen and move above partisan politics to enact some sensible policies.
