Daily Stock Report for Thursday Morning, April 29, 2010 pt1
The US stock market indexes rebounded today after initial fears of the Portugal downgrade on Tuesday subsided. Spain was downgraded by one notch today but the market didn’t care. The Dow30 ended up 53 points of 0.48%, the Nasdaq with little change, the S&P 500 up 0.65% and the Russell 2000 up 0.23%.
The FOMC meeting of Federal Reserve Governors around the country wrapped their two day meeting with a 9 to 1 decision to retain their commitment to holding interest rates to historical lows and they kept the language that has become legendary of keeping “interest rates to stay exceptionally low for an extended period of time.”
Stocks were positive out of the gate with the premarket futures turning positive before the regular market opening. GS, Goldman Sachs moved up as expected and should continue to move up steadily over the next few days and this trade could easily be treated a longer period of time into weeks.
We had Consumer Confidence numbers today and that increased over expectations but that isn’t a heavily weighted. That survey can move all over the place from month to month. Tomorrow (Thursday) we have jobless claims and the market could make this an important number.
If Existing Home Sales and Home Price Index shows improvement tomorrow, we could see more bullishness for the market as this signals continued economic improvement.
BIDU, Baidu was up $88 after the market closed today on blowout earnings. This should help lift some of the tech sector stocks, especially the internet related stocks.
REPEAT from Tuesday’s report: The $150 price level of GS, Goldman Sachs, did hold Tuesday morning after opening of the regular market at the low price of the day of $150.13. My best guess is this was probably the bottom of GS for a nice run upward. It is always volatile and emotional at the bottom and top of a stock but the odds are quite good this moves up. We should see the mid $160’s in the coming couple of weeks.
Scalp of the Day: (all eastern times)
NMM, Navios Maritime Partners gave an excellent drop and pop and gave a profit potential of 8.7% on the long side.
These are the kind of trade ideas we will be giving in the Trading Room, which we are in beta testing right now. Put your email address and name on website page to be notified of actual launch date and info.
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