A mixed day for the markets today. Technology again led the market, rising more than a percent. The rally that began in the financials gave way yesterday to renewed concerns about the frailing health of the financial sector, and that sentiment continued today. Financials were the worst hit sector in the last two trading days this week. Yesterday's decline was a result of a dissapointing sales in the already subdued housing market. Today, the data was however a little bit better than expected. While the existing home sales number yesterday was a bummer, the economic data today showed the sales of new homes increased better than expected.
I think the theme for the market this week was a by product of an optimism of a bottom in the housing market followed by weak economic statistics, and earnings disappointments by some big names, Apple and VMW being some of the main culprits. We saw a brief rally this week after being surprised on the positive by earnings announcements by some of the big banks, which was quickly forgotten among disappointing earnings outlooks by some of the big technology companies.
It will be hardpressed to label this an inflection point for the stock market. When will that be? Nobody knows, and if someone claims to know then be careful of that quack!! The one thing I know, one thing that stays true, is that the market will always rebound anticipating the economy to turn a corner. This is the time when we dont want to be left out of the party.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment