November 30, 2007
The day started off as if Bernanke comments might propel the market another 2-3%. However, after the strong start enthusiasm waned, and the market finished the day trading in a sideways fashion with the NASDAQ being the only major index to finish in the red. Next week will be interesting to see how much of this week’s optimism carries over, or will it be a week of turmoil and banking problems. That remains to be seen.
Here’s what you need to know…
- More economic indicators released today paints a dismal picture for the general economy causing investors to take profits after opening up over 150 points.
- Dell reports horrendous earnings causing the stock to drop over 12% on the day. As one of the major tech companies, the earnings report took the wind out of the NASDAQ’s sails.
- The market’s sell-off after positive comments from Bernanke causes us to believe that a quarter point rate cut is priced into the market, and in the event that the Fed does not cut by another quarter point (unlikely after the comments of the past couple of days) the market will sell off in a very nasty fashion.
Let’s go to the charts…
NASDAQ finished in the red, contrary to the other major indexes. But after the week we have experienced in the stock market, the finish was hardly noticed.
The S&P was today’s top performer, finishing up almost one percent. S&P’s action was very strong but is likely due for some kind of pullback if it is truly in rally mode (sounds contradictory – we know, but neither a stock or index can go straight up indefinitely).
