D&D Note (7-3-2012)
Although a short trading session today markets continued the rally in the Fourth of July holiday (which there will be no trading on the 4th). Volume was light as expected allowing the indices to gravitate up. Buoyed by strong auto sales and the ISM June Purchasing Manufacturers Index fell below 50, which signals expansion within that sector (the opposite of some other ISM reports which above 50 signal expansion). It was the first time since July 2009 that the index fell into expansion territory. Factory orders also rose in May by 0.7% beating expectations which were for 0.5%.
The big report, though, comes out this Friday from the government on the June unemployment numbers. If we see further deterioration that could force the FED‘s hand in further FMOC meetings.
The worlds largest company by market cap, Apple (AAPL) rose 1.16% today to close at $599.41.
Retailer J C Penney Company (JCP) continued its slide down -3.70% on the day to close at $21.88 a share. The “Apple Store” turnaround effect has still yet to materialize as many investors expected.
The DOW (INDU) gained 72 points to close at 12,943.82. The Nasdaq (COMP) rose 25 points to close at 2,976.08. And the S&P 500 (SPX) added 9 points to close at 1,374.02.
Oil rose $3.84 to $87.57 a barrel.
Gold rose $24.40 to close at $1,623.20 an ounce.
The 10-Year Note (the benchmark treasury) fell today pushing the yield up to 1.62%.
Now that we are into the second half of the year investors need to start expecting the “Fiscal Cliff” to start entering into discussions not only politically but also within the price action of the markets.
The coming cliff or Fiscal Armageddon (as some are calling it) can be fixed by the policies outlined within the D&D Investments “Comprehensive Long-Term American Deficit Solution” written by D&D trading partner Del Lienemann Jr.
The full paper can be read by clicking this link HERE.
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