A Bipartisan Deal at Last!?
FRIDAY'S MARKET WRAP-UP
Market Snapshot for July 31, 2012 (12:15 am ET):
Closing Prices: DOW 12,143.24 (-96.87, -0.79%), S&P 500 1,292.28 (-8.39, -0.64%), NASDAQ 2,756.38 (-9.87, -0.36%), Nikkei 225 9,833.03 (-68.32, -0.69), DAX 7,158.77 (-31.29, -0.44%), FTSE 5,815.19 (-58.02, -0.99%)
OIL 95.70, GOLD 1,631.20, SILVER 40.106
EURO 1.4395, YEN 76.73, BRITISH POUND 1.6418, U.S. DOLLAR INDEX 74.035
Good day traders! I've finally made it to Illinois after a much longer-than-anticipated moving process! It turns out that a one-day trip of 1,000 miles can take three days when you have an 8.5 month pregnant woman on board! No new news in that department just yet other than threatening to arrive early in Nashville, but apparently he realized that a knack for singing country music was not in his genes and it would be best to wait a little longer!
After some internet delays we're also now up and online and I have to admit that while it was nice to have a few days to settle in, I missed keeping caught up in the market, especially with all the excitement of the past several weeks! Today's column is going to be a bit on the short side compared to normal, but I'll be back tomorrow with a full-length review and market outlook, which I'll be posting daily once again until our son arrives. I've had a lot of email questions on upcoming plans, so I'll be taking three weeks off when that happens and will be resuming my swing and position trading newsletter in October. I greatly appreciate all the wonderful emails of support over the past couple of months and want to thank all of you for putting a smile on my face during this hectic time!
Dow Jones Industrial Average
Debt Deal Brings Relief After Months of Debate and Deal-Brokering
Now, speaking of excitements, the market itself has had a lot going on in recent weeks as well! Earnings season is now fully under way. This alone can create a lot of great opportunities. Additionally, the debate on the U.S. debt ceiling had been steadily escalating throughout July as the August 2nd "deadline" approached. On Sunday, President Obama announced that a bipartisan deal had been brokered, which sent index futures sharply higher on Sunday evening.
The market had fallen sharply last week, however, and very few investors are likely to view this as a substantial saving grace. Instead, it's obvious that the road to economic recovery in this nation will be a long one and that raising the debt ceiling only emphasizes the problems we face on that road as opposed to solves them. In fact, despite Obama's announcement, the deal must still win the approval of the House and Senate. Gold, which had hit new record high on Friday, fell on the news.