Market Recap: Markets Rally on EU Resolution Expectations, US Inks Free Trade Deals
Markets closed up on Wall Street today: Dow +2.31%, S&P +1.88%, Nasdaq +1.49%, Oil +1.7%, Gold +2.49%.
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Today’s markets up down because:
1) EU … Again. The bipolar action continues. Apparently, investors and traders now believe the EU will have some resolution in the next week or two. Thus, people are repricing the market to match expectations that the EU does not implode.
2) DJIA. The Dow Jones Industrials were on fire today. 28 of the 30 components were in the green — only General Electric (NYSE:GE) and Bank of America (NYSE:BAC) were in the red. The moves were heavily driven by solid earnings from Honeywell (NYSE:HON), McDonald’s (NYSE:MCD), and Verizon (NYSE:VZ).
3) Precious Metals. After a four-day losing streak, gold (AMEX:GLD) prices finally broke to the upside as the US dollar (NYSE:UDN) weakened. Silver also caught a nice bid as investors are salivating over what’s perceived to be a huge EU bailout sure to further deteriorate the value of paper currencies.