A solid though unspectacular
employment report has stocks rallying today after yesterday’s breakout to the
upside. Momentum has rapidly swung to
the positive, but there is little news to support the upgrade in sentiment. Perhaps the European Bank’s decision to
experiment with negative interest rates to spur the Euro economy was the
driving force. The ECB lowered its
interest rates and even moved its deposit rate to a -.1% interest rate in an
effort to force banks to loan more money.
There is some merger and acquisition activity and individual company
news that has added to investor enthusiasm.
Amazon soared yesterday after announcing a new mobile phone to compete
with Apple’s I-phone. Apple itself will
complete a 7-1 stock split on Monday.
Shareholders with 100 shares today will have 700 shares at the start of
next week. Of course, theoretically, the
share price will be divided by seven, but history has shown that stock splits
are usually a positive for shares after a split. Gold is down slightly after a breakout from
its extended slump yesterday. Oil is
near unchanged while interest rates have ticked down a small amount. Don’t be surprised if to see markets correct
in the short term as investors see the lack of substance behind the positive economic
headlines.
1 comment:
Outstanding blog, in my opinion site owners should acquire a great deal out of this blog its very user welcoming. Ian Filippini Santa Barbara
Post a Comment