What started ugly turned into a pretty good day. I was fearing the worst and expecting a move to cash with the possibility that a short term top had been put in place. However, given the strength of the buy the dip crowd today, I still think we will see above 2000 in the S&P before we will see another dip between now and back to school.
Certainly the sell in May has been de-bunked again this year. So an New All Time High is on its way.
Earnings and data have started to wane a little from previous weeks, so hopefully this week we will have better news as a lot of companies are in the midst of reporting. Historically revenues and earnings are higher in this quarter than they have been since 2011.
U.S. stocks held little moved on Monday, with the Dow industrials coming back from a one-month low, as investors looked to economic reports, earnings and the Federal Reserve’s mid-week policy decision.
Stocks finished well off session lows that had the Dow down as much as 82 points.
The Fed’s next policy move comes at the end of a two-day session on Wednesday, with the central bank expected to cut its monthly asset purchases another $10 billion to $25 billion.
Financial-data firm Markit reported activity in the U.S. services sector held at its highest level in four-and-a-half years in July, although readings for new business and employment growth softened.
International markets: Most European markets ended in the red.
Russia’s Micex index was lower after an arbitration panel in the Hague ruled against the state, finding the government had illegally sold off the assets of oil company Yukos. Former major shareholders were awarded $50 billion in damages.
Most Asian markets advanced, led by a 2.4% surge on China’s benchmark Shanghai Composite.
Earnings: Merck, Pfizer, American Express, Twitter, Amgen, BP, UBS, Deutsche Bank, Aetna, UPS, Panera, Dreamworks, US Steel, Anadarko, Marriott, Express Scripts, Newmont Mining, Buffalo Wild Wings, Ruby Tuesday, Corning, Eaton, Illinois Tool Works, March and McLennan, Sirius XM, NY Times, AK Steel, Owens-Illinois
FOMC meeting begins
9:00 a.m. S&P/Case-Shiller HPI
10:00 a.m. Consumer confidence
10:00 a.m. Housing vacancies
1:00 p.m. $35 billion 5-year note auction
New Sources: CNN Money & CNBC