Markets closed down up Wall Street: DJI 0.07% SP500 0.4% Nasdaq 0.78% Gold -0.35% Oil -1.03%.
Markets started down but rallied after the old playbook “Bad Econ Data = More QE”. On the commodities front, Oil (NYSE:USO) took a breather to settle at $100.29. Gold (NYSE:GLD) and Silver (NYSE:SLV) also cooled after several winning days.
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Today’s markets were up because:
1) Investors are betting Helicopter Ben flies to the rescue. A few weeks ago the Fed was playing Jedi mind games to manage expectations for tightening monetary policy. But investors think the game may be favoring more easing after today’s weak GDP number and waterfall of analysts cutting their GDP targets. You know what that means … Risk On!
2) Microsoft carried the Nasdaq higher. You know what happens when you try to buy the New York Mets AND try to get Steve Ballmer fired in the same 24 hours? People try to show you how much they don’t care about your perceived power. Today David Einhorn, president of Greenlight Capital (NASDAQ:GLRE) learned just that as Microsoft (NASDAQ:MSFT) shareholders gave him the middle finger after saying Steve Ballmer should get the boot.
3) Luxury jeweler Tiffany & Co. proved we’re not double-dipping. Well, at least someone forgot to tell high-end consumers if indeed the economy is set for a crash. Tiffany & Co. (NYSE:TIF) released earnings showing a 20% increase in revenues over last year. That’s a great indicator there’s still a significant number of people making money and not worrying about pink slips.
Now that you’re in the know, let’s see if the Chicago Bulls can hold off the Miami Heat!