The market started out sluggishly today, as Google Inc. (GOOG) received downgrades on “disappointing” paid clicks data. On the economic front, consumer confidence dropped and the PPI was higher than expected. But, no worries, the market has got “Big Blue” on its side. IBM boosted its 2008 earnings outlook and announced an addtional $15 billion of share buyback. As soon as IBM‘s news came out, the market jumped.
The Dow advanced +114.70 points; SPX added +9.49 points; Nasdaq gained +17.51 points.
Let’s see how the market closed:
INX2 (Internet), SOX (semiconductors), BTK (biotech), and SWH (software) all closed in the green today. GLD (gold) and USO (oil) both made new all-time highs today, as gold traded above $950/ounce and crude closed above $101/barrel! GDX (gold miners) and OIH (oil services) also went up more the +2% each. DBA (agricultural commodities) continued to make new highs, advancing +1.85%.
SPX
SPX added +9.49 points to close at 1381.29, above the 1375 resistance. It has pushed open the daily upper BB and the daily MAs have started a new bullish formation with 10- above 20- above the 30-day MA. The MACD continued higher.
Nasdaq
Nasdaq gained +17.51 points to close at 2344.99. It closed just above its 30-day MA. Its MACD also went higher.
Even among the negative news, the market focused on the positive news and rallied on. This is a good sign. It shows that the market is “looking for reasons” to rally off the bottom. The daily upper BB is within reach for both SPX and Nasdaq, although Nasdaq will need to show a lot of strength to catch up to the rest of the market.
This morning, as mentioned earlier, GOOG was downgraded. Its shares fell as much as $40 to below the $450 mark. But, it bounced off with the rest of the market and closed at $464.19, down $22.25, or 4.57%. IBM jumped almost +4% to closed at $114.38 on its forecast boost and additional buyback program. SNDA reported earnings that far exceeded expectations. Its shares hopped more than +13%! CTRP, which is reporting tomorrow after the market close, has been going up for the past 5 trading sessions. Its shares advance another +3.44% today. OIH has also been strong this week, closing above $180 today with a +2% gain. Notably, DO added +4.28%, or $5.12, to close at $124.61.
Good night and HappyTrading! ™
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