Down Week for Stocks

Monday, stocks in Asia and Europe closed little changed as markets were closed in the U.S. Tuesday, stocks fell 1.3% in Asia, slightly in Europe, and 0.5% in the U.S. on strong volume. The VXO moved up 9% to close at 12.58. The 10-Year U.S. Treasury bond yield fell 4% to close at 1.77. Precious metals miners rose 2%. IBM rose 5% on expectations of increased earnings and revenue from the Red Hat purchase. My take is this balance sheet benefit will be very short-lived.

Wednesday, stocks gained 0.7% in Asia, fell slightly in Europe, and 0.5% in the U.S. on moderate volume. IBM gained another 3% to close above the 140 benchmark. Thursday, stocks fell 0.9% in Asia and 0.6% in Europe but closed little changed in the U.S. on moderate volume. The 10-Year U.S. Treasury bond yield fell 2% to close at 1.74.

Friday, stocks fell 0.9% in Asia, 0.6% in Europe, and 0.9% in the U.S. strong volume. The 10-Year U.S. Treasury bond yield fell 3% to close at 1.68. This brought the Dow to close below the 29,000 benchmark and the NYSE below 14,000.

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