Over-reaction In The Stock Market
The news that’s being spread around today is that the markets have over reacting to yesterday’s failure to pass the “invest in America” bill. The way the market have performing today, it seems that that may be the case.
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Today is a light trading day because of the Jewish holiday and there might be more selling tomorrow when the traders return to do business. When the politicians saw what happened Monday, they made sure to come out to say that a plan could most likely be past by the end of the week. They realized that they needed to do some damage-control after they did what they did. So with these two factor to think about, who knows what’s to come for the rest of the week.
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At the halfway point of the trading day, the DOW is up around 300 points, NASDAQ is up around 60 points and the S&P 500 in positive territory of about 35. When the morning started, it looked like it was going to follow Monday’s trend, but around 10:00 that changed and has been climbing steady that rest of the morning.
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In the commodities sector, oil has taken back some of it’s Monday’s losses back today and sits at $101.00. Gold is going the other way, down $16 at the mid-trading point of the day. On Monday gold gained $22, closing at just over $900 per oz.
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Fannie Mae and Freddie Mac are the only ones in the financial sector that are not up double digit percentage gains so far today. Then again after yesterday’s sell off, how can there not be a bigger percentage of stocks that are up? On the overall view of the financial sector, it’s up 10% on the average.
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At this time it’s 1:30pm and who really knows what will happen during the afternoon trading. Congress may go ahead and do worst than what they did yesterday.
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