U.S. stocks rallied on Friday, softening a fourth week of losses, as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations. Scaling back after a 310-point jump, the Dow Jones Industrial Average rallied 263.17 points, or 1.6 percent, to 16,380.41, with UnitedHealth Group leading blue-chip gains that extended to all 30 components. Halting a six-session decline, the Dow lost 1 percent for the week. Posting its longest weekly loss streak since August 2011, the S&P 500 added 24 points, or 1.3 percent, to 1,886.76, with industrials the best performing of its 10 major sectors, all of which advanced. The Nasdaq climbed 41.05 points, or 1 percent, to 4,258.44, down 0.4 percent from last Friday's close. The Russell 2000 edged lower, but the small-cap index scored its first weekly gain in seven. For every share falling, nearly two gained on the New York Stock Exchange, where more than a billion shares traded. Composite volume approached 4.5 billion. Things looked better for Europe too with a 3% rise in Eurozone stocks Friday.
So we followed with a two day bounce. An impressive bounce but we did only sell off about 10% and last week I showed how it could be close to 17% to be more in line with the end of the prior to QE sessions.
You will noice that what you see here is the tiny fimrs that make up the Midcap 400 are beeting the mosted stable dividend plays. This is very encouraging a few more days of this and we will be lcearly back in RISK ON mode!
If you want some hints where to look at what I am buying have a look at my prior blogs including:
I can tell you over here in London there is no shortage of young people who can afford 40 pounds sterling for a steak or a cab ride, 200 pounds for a sweater, and even 40 punds for a steak. I see little poverty and lots of help wanted ads, so things can't be too bad in Europe.
Well that's the news for this week... reporting from the Canary Wharf Hilton in the heart of finance for Europe, the London Finacial District. Next week is Bordeaux France, it might even be harder to write from there!