With five straight days of gains, the markets close their best week in two years as we head into the 3-day weekend.
Markets closed up on Wall Street today: Dow +1.36%, S&P +1.44%, Nasdaq +1.53%, Oil -0.76%, Gold -1.10%.
On the commodities front, Oil (NYSE:USO) made a reversal, down 0.76%, settling at $94.72 a barrel. Precious metals continued to decline for their second day, with Gold (NYSE:GLD) dropping to $1,486, while Silver (NYSE:SLV) dropped 2.78% to $33.87.
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Today’s markets were up for the fifth day in a row because:
1) Greece to receive new bailout package. Markets have been up all week, first in anticipation that Greece would approve austerity measures, then because they had been approved and the country would likely receive the final 12 billion euros in their aid package, and now because they might be receiving another 85 billion euros in a second aid package, funded by European nations, private investors, and the IMF. And the good news keeps coming…
2) ISM manufacturing index. The index showed that the manufacturing industry grew significantly in June after economists had expected it to decline. This marked the 23rd month in a row that the index showed growth, up 1.8 points from May to 55.3 in June.
3) Consumer discretionary spending on the rise. The consumer discretionary sector is only 10 points below its bull market high from May 12, up 8.3% since June 16. Today consumer discretionary stocks led the markets, though it may not be a sign of consumer strength but “credit-fueled shopping binges“.
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