Monday, stocks blasted 1.9% higher in Asia. In Europe, they fell 0.6%, but in the U.S., they gained 0.8% on low moderate volume despite IBM. The birds have finally come home to roost for a company whose business has degenerated to accounting and tricks. Others of IBM’s ilk are sure to follow. Fear continued to abate as the VXO fell over 13% to close at 17.26, but precious metals miners posted a nice 2% gain.
Tuesday, stocks lost 0.5% in Asia but rose 1.4% in Europe and 1.7% in the U.S. on low moderate volume. The VXO dropped another 11% to close at 15.40. “What me worry?” Turkey-stock IBM shed another 3.5% to close at 163.23. If stock buy-backs were such a good idea back when the price was at or above $200 per share, it must be a great deal now. I believe IBM has a long way to fall before reaching a reasonable share price.
Wednesday, stocks in Asia followed the lead from the West and shot up 1.5%. In Europe, they rose 0.7%, but in the U.S. they declined 0.9% on low moderate volume. The VXO ramped up 14% to close at 17.02, while precious metals miners lost about 4%.
Thursday, stocks retreated in Asia 0.5% while in Europe they rose 0.7%. In the U.S., stocks powered 1.1% higher on low moderate volume. While the buyback ploy ran out of gas for IBM, apparently investors were just fine with the same creative accounting for Caterpillar. The VXO fell 6.5% to close at 15.92. Friday, stocks rose 0.3% in Asia and fell the same amount in Europe. In the U.S., stocks made one last push upward of 0.6% on low volume. For the week, stocks rose about 4%. With the FOMC on center stage next week, it should be an interesting end of the month.