Top 3 Reasons Markets Rallied Ahead of NBA Championships
Markets closed down up Wall Street: DJI 1.03% SP500 1.06% Nasdaq 1.37% Gold -0.1% Oil 2%.
Markets rallied for the fourth day in a row after the Memorial Day weekend. On the commodities front, Oil (NYSE:USO) jumped a couple bucks to close at $102.60. Gold (NYSE:GLD) took a little breather, but Silver (NYSE:SLV) popped 1.5%.
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Today’s markets were up because:
1) Greece seems to be moving out of the much hated “unknown”. Germany (NYSE:EWG) announced today that they will consider dropping their push to reschedule Greek debt early, allowing the EU to give Greece more bailout money to the tune of 30 billion euros. European stock markets closed higher Tuesday on hopes that Greece will no longer have to consider a restructuring of their debt. Greek Banks surged, and the euro rose 0.4% against the US Dollar (NYSE:UDN).
2) US home prices are in deep trouble. Case-Shiller housing prices fell by 4.2% in the first quarter 2011, after having previously fallen 3.6% in the fourth quarter 2010. With mortgage rates at record lows again, investors should start wondering how we put a floor in the real estate market (NYSE:IYR). No wonder consumers are not feeling very confident.
3) Tech delivered some interesting news. On one hand, Steve Jobs made the media happy by announcing iCloud ahead of Apple’s (NASDAQ:AAPL) much anticipated Developer Conference on June 6th. On the other hand, handset company Nokia (NYSE:NOK) warned Wall Street that current guidance is too bullish. Then, the Solar Energy Industries Association said falling production costs combined with incentives and tax breaks from the Federal Government are making the solar industry (NYSE:TAN) one of the highest growth areas in the tech (NASDAQ:QQQ) sector. Sound great considering LinkedIn’s (NYSE:LNKD) stock looks like it may have had an Icarus moment near the sun.
Now that you’re in the know, enjoy opening night of the NBA Playoffs!