Thursday, August 07, 2008
Oil To The Rescue
After weak start Wednesday, stocks rallied on continued drop in crude prices. The Dow gained 40.30 points to close the session at 11,656.07. The SPX rallied 4.31 points to close on 1,289.19.
The session got off to a rough start following a disappointing earnings report from Freddie Mac (FRE). The fact that stocks rose sharply Tuesday also created some profit taking early on. However, a further decline in oil prices (closed at $118.31) and good earnings from tech giant Cisco (CSCO) convinced traders to buy the second half of the session.
Today, Thursday, will see some economic reports that could influence trading including data on jobless claims, pending home sales and chain store sales results. Of course, there will be plenty of earnings news to digest as well with the bulls looking to add to recent gains, while the bears will be selling into this rally. The Dow ran into resistance Wednesday at its 50-day moving average, so it will be interesting to see if this level can be broken Thursday.
We will see what happens and make a move.
Until next time.
The session got off to a rough start following a disappointing earnings report from Freddie Mac (FRE). The fact that stocks rose sharply Tuesday also created some profit taking early on. However, a further decline in oil prices (closed at $118.31) and good earnings from tech giant Cisco (CSCO) convinced traders to buy the second half of the session.
Today, Thursday, will see some economic reports that could influence trading including data on jobless claims, pending home sales and chain store sales results. Of course, there will be plenty of earnings news to digest as well with the bulls looking to add to recent gains, while the bears will be selling into this rally. The Dow ran into resistance Wednesday at its 50-day moving average, so it will be interesting to see if this level can be broken Thursday.
We will see what happens and make a move.
Until next time.
# posted by Paul @ 6:20 AM 
