Stocks flat, earnings could pierce resistance

Stocks flat, earnings could pierce resistance

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On Monday the S&P 50 met tough resistance with the next major catalyst that could push stocks higher that were not expected until quarterly earnings. The investors were cautious against a backdrop of geopolitical risks which have weighed on equities for months. The benchmark S&P 500 hovered near1, 333, since mid –February and it has not closed above than that. The level is not far from 1,344 that is the highest of S&P since June 2008 and on the other hand, it is double the 12 year low hit in March 2009. Bruce Zato the chief technical at Delta Global Asset Management in Boston said that the stock are expected to come off the seasonally strong november –April period and so the S&P 500 will be pushed by the earning season to 1,400. He said that they have got the 1,400 range if they make a successful break from there and it has to be done during the final seasonally favorable push. On Friday the Dow industrials DJI hit the highest intraday level since June 2008 and the S&P recorded its best two week period since December. The jobs data during the week which is encouraging helps for the cement hopes of a labor market recovery. The Standard Poor’s 500 index rose 0.08 percent or 1.04 points to 1,333.45. The Dow Jones industrial average gained 0.17 percent or 20.93 points to 12,397.65. The NASDAQ composite index added 0.10 percent or 2.77 points to 2,792.37.
The lack of significant economic data and the factors like unrest in Libya, Syria and other countries in the oil rich region like the Middle East and North Africa and the nuclear and quake related problems in Japan, can translate Wall Street into low volume. In the midday of Monday it became the lowest for this year and it is the lowest weekly volume of the 2011 last week. Concerning over the conflict in Libya, unrest in Middle East and potential supply threats the Brent crude extended gains to a 2-1/2 –year peak above 120 dollars a barrel. The investors are concerned that a spike in oil can choke off a consumer recovery. Richard Ross the global technical strategist at Auerbach Graysin in New York said that this week S&P 500 could retake its yearly high. He also said that the market has enough inertia and the retest of 1,344.

By: Teni Sow | Senior Editor at Tambapress.com and Regular Contributor to Presspresser.com

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