Courtesy of John Nyaradi.
Stocks and ETFs rebound slightly today to close in the green
Markets and ETFs rebounded slightly today after five straight days of loss. The SPDR S&P 500 ETF (NYSEARCA:SPY) added .94%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) added .52%, the PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ) ETF blitzed up to 1.28%, and the iShares Russell 2000 Index ETF (NYSEARCA:IWM) added 1.08%.
Investors seem to feel better about Spain and the general condition of the EU today, after reports emerged that Spain has outlined a 2013 budget plan which would further help the debt ridden country in participating with the new ECB bond-buying program. Investors seemed to appreciate this news, as Spain’s gestures suggested that a solution to the European sovereign debt crisis is available after all. In the context of the overall EU crisis however, Spain’s positive news is just a baby step on a 1000 stair staircase.
Jobs data came in better too, with unemployment claims dropping by 26,000 claims last week compared to the week before. The rest of today’s reports were not so great: GDP growth for Q2 was reduced to 1.3% (really?), durable goods orders dropped by 13.2%, pending home sales dropped by 2.6%, and the Kansas City Fed Regional Manufacturing Index report indicated a decline as well. Read more about terrible economic reports here.
Bottom Line: Today’s up tick will likely be short lived, as Europe appears to be the drama of the century and will likely not end soon. Furthermore, it is still disturbing to me that markets are not in a frenzy currently, despite QE3 and a filled Fed punchbowl.
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