Euphoria Rolls On

Monday, stocks rose in Asia 0.8% but closed nearly unchanged in Europe and the U.S. on low volume. Despite this lack of movement in U.S. stocks, all three major indices logged new closing highs. Tuesday, stocks closed little changed in Asia, fell slightly in Europe, and closed nearly unchanged in the U.S. on low volume. The Dow and S&P again logged closing record highs. After the bell, IBM reported another dismal quarter despite more creative accounting. At least they’re consistent.

Wednesday, stocks closed unchanged in Asia, rose 0.3% in Europe, and gained slightly in the U.S. on low volume. The 10-Year U.S. Treasury Bond yield rose 2%, to close at 2.34. Apparently, someone liked the lousy quarterly report by IBM as the stock jumped 9% higher to close at nearly $160 on massive volume. All three major stock indices managed to close at record highs as IBM propelled the Dow well above the 23,000 level.

Thursday, stocks fell 0.4% in Asia, and 0.6% in Europe, but in the U.S. stocks closed nearly unchanged on low volume. Still, incremental gains at the close gave the Dow and S&P record high closes — despite bad news from Apple. The syndrome continues.

Friday, stocks closed little changed in Asia, rose slightly in Europe, and 0.4% in the U.S. on moderate volume. The big news of the day was that the U.S. Senate passed a budget bill. Of course, all three major stock indices again logged record closing highs as the euphoria rolls on.

Leave a Reply

Your email address will not be published. Required fields are marked *