Tuesday, July 3, 2012

Short Session, Big Gains

In Tuesday's shortened session, since there was no negative news coming out of Europe and no US data upon which to trade, stocks took the path of least resistance and bolted to the upside, scoring unusually large gains in the 3 1/2 hour session.

Topping the news was the resignation of Barclay's chief executive, Bob Diamond, who has been embroiled for the past week in a scandal involving rigging of the Libor during the financial crisis in 2008.

Diamond, who previously said he would not step down, is at the center of a growing maelstrom which could reportedly involve 12 major banking firms also involved in the rate-rigging scheme.

Also revealed today was news that the Bank of England might have been encouraging Barclay's and others to maneuver the Libor to keep financial firms and the global economy from disintegrating at the height of the crisis.

The British parliament plans to open an inquiry into the matter, which will convene tomorrow, July 4.

One piece of economic data that was released was Factory Orders, which recorded a rise of 0.7% in May.

Auto sales for June were also announced by a number of car makers. Chrysler reported a 20% increase in sales from a year ago. Ford had a 7% increase, while sales of General Motors' vehicles rose 16%.

While down from the pace of May, June's numbers were enough to bolster confidence in stocks overall.

Dow 12,943.82, +72.43 (0.56%)
NASDAQ 2,976.08, +24.85 (0.84%)
S&P 500 1,374.02, +8.51 (0.62%)
NYSE Composite 7,901.59, +69.36 (0.89%)
NASDAQ Volume 976,336,625
NYSE Volume 2,067,057,875
Combined NYSE & NASDAQ Advance - Decline: 4176-1290
Combined NYSE & NASDAQ New highs - New lows: 482-22 (extreme)
WTI crude oil: 87.16, +3.41
Gold: 1,621.80, +24.10
Silver: 28.28, +0.78

No comments: