Monday, July 6, 2009

Deflating Away

Stocks traded in different directions on different exchanges, with the Dow and S&P up and the NASDAQ and NYSE Comp. lower. This has been a recurring theme of late due to the diversity of opinion on market direction and the relative benefits and deficiencies of various sectors in play.

The bottom line is that no sector has been a safe haven and that stocks as a whole have withered over the past month. With earnings reports coming out soon, stocks are sure to be under pressure for the next three to five weeks.

All of the major indices spent most of the day in the red, though there was noticeable buying effort in the afternoon, mostly among financials and health care-related issues.

Dow 8,324.87, +44.13 (0.53%)
NASDAQ 1,787.40, -9.12 (0.51%)
S&P 500 898.72, +2.30 (0.26%)
NYSE Composite 5,770.00, -5.24 (0.09%)

While the headline numbers may have been confusing, there was clarity in the internals, as declining issues raced past gainers, 3932-2446. New lows checked in at 83, with only 34 stocks making new highs. Volume remained at embarrassingly low levels.

NYSE Volume 1,140,635,000
NASDAQ Volume 1,996,618,000

Commodities continued to take on water, as they did at the end of last week. Oil sank to its lowest level in six weeks, closing down $2.68, at $64.05. Gold was down $6.70, to $924.30. Silver fell 17 cents to $13.24.

Deflationary pressure remains a key issue for economists world-wide.

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