Aluminum producer Alcoa (AA) reported better than expected earnings after the bell yesterday (Alcoa is always the first DOW component to report earnings). This was reason enough for European concerns to ease for a day. A slight reprieve in advancing Spanish and Italian debt yields also helped sooth those Pains of Spain from yesterday.
Markets rallied with all three indexes up on the day. Today ended a five day loosing streak seeing the S&P 500 down roughly 3% from its highs of the year. The market still needs to correct at least another 2-5%. Problem is we might not even get that. This market wants to go up, whether thats low volume or not.
Oil and Iran still remain a big factor in this bull market. Not to mention that if Italy and Spain both need a bailout the Eurozone ain’t looking good. Italy is the 3rd largest economy in Europe and the “firewall” just isn’t big enough to bail out both peripheral countries.
Google (GOOG) reports Thursday after the bell and JPMorgan (JPM) Friday morning.
These two companies will help us gauge the two sectors in terms of up coming earnings for Tech and Financials.
Apple (AAPL) got slapped by a “see ya in court” by the DOJ over eBook pricing manipulation. The stock slipped .36% today closing at $626.20.
Gold also slipped a bit today down 5 cents to $1,659 a Troy Ounce.
The 10 year nudged above 2% to a weak return of why would you lend the government your money for 10 years for a yield of 2.03%.