Not This Time But Likely Next

Monday, stocks rose slightly in Asia, closed little changed in Europe and the U.S. on strong volume. The 10-Year U.S. Treasury Bond yield rose 2% to close at 2.33 as precious metals fell 1% and their miners lost twice that amount. The news of the day was that Congress approved a budget until October. IBM closed below 160 while the NASDAQ managed another closing high.

Tuesday, stocks rose 0.4% in Asia and 0.7% in Europe, but closed little changed in the U.S. on strong volume. The VXO moved up 12% to end the day at 10.19. Investors held their breath as the FOMC two-day meeting kicked off.

Wednesday, stocks fell slightly in Asia and the U.S and closed little changed in Europe. Volume was strong. The VXO fell 6% to close at 9.65. Precious metals and their miners lost 2%. The FOMC left interest rates unchanged as indicated in their statement.

Thursday, stocks fell 0.4% in Asia, rose 0.7% in Europe, and closed little changed in the U.S. on strong volume. The VXO rose 10% to close at 10.56. The 10-Year U.S. Treasury Bond yield climbed 2% to close at 2.36. The big news of the day was the health-care overhaul bill was approved by the House of Representatives.

Friday, stocks fell slightly in Asia but rose 0.7% in Europe and the U.S. on moderate volume as unemployment fell to 4.4% all but guaranteeing an FOMC interest rate hike in June. This lifted the Dow Jones Industrial Average over 21,000 and the NASDAQ over 6100. Precious metals miners gained 2%.

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