Courtesy of John Nyaradi.
Major Indexes and Index ETFs rose today on “Greek” hopes and European solution.
Major indexes cheered in hope today for a possible Greek solution as the S&P 500 rose .2%, the Dow Jones Industrial Average added .26%, the NASDAQ Composite scored a .07% increase, while the Russell 2000 Index dropped -.12%. Major index ETFs of course followed along as the SPDR S&P 500 ETF (NYSEARCA:SPY) increased .25%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) rose .3%, the PowerShares QQQ Fund Series 1 ETF (NASDAQ:QQQ) added .21%, and the iShares Russell 2000 Index Fund ETF (NYSEARCA:IWM) dropped .06%.
Markets and index ETFs seemed to rise today in hope and anticipation of a possible Greek debt resolution; unfortunately Greek politicians and leaders have postponed their meetings until tomorrow (sound familiar?), although a debt “deal” is nearly “finalized.” Keep in mind that Athens has faced a storm of demonstrators today in protest of deeper and more severe austerity measures required for the Greek government to receive bailout money from the EU.
Like I said in today’s post about Greece, with 5 years recession, a potential default, a potential exit from the Euro, and more layoffs and spending cuts, one wonders where policymakers can really draw the line. In short, something has to give, and the results will not be pretty. Can Greece and Europe hang on?
Gold ETFs and gold prices rejoiced today on further Greece delays, while US Dollar ETFs slumped, likely because people had a renewed hope that the Euro dollar actually could be saved. It isn’t over until its over however, and for right now ETFs seemed to like Greece because Greece actually appears to be close to a deal that will not throw us all off a cliff. However, we might not know about this deal until Friday, as they will likely postpone their “talks” another day or two.
At home, news was more positive, as economic reports such as Job openings improved and Consumer credit grew, both good signs for our fragile economic recovery. And, if it is comforting at all, our friend Dr. Bernanke has promised in his testimony to the Senate today to protect us all from any European lash out.
Bottom Line: Major Indexes and index ETFs likely rose today on hope that Greece has finally come to some sort of conclusion, despite the fact that they postponed their meetings another day. At home, the US economy is still improving, however tomorrow or any day now could be big news as the Medusa (Greek problems) just will not go away. Major index ETFs today, however, liked Greece??
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