By Barbara Zigah
While most equity investors are anticipating a relatively quiet trading day on the U.S. markets, they’re expecting, nonetheless, that bullish sentiment will carry the major indices higher to close off the week on a positive note. The prospect of a long holiday weekend and the absence of any major (i.e. market-moving) economic releases today has most investors watching closely the goings on over in Paris, where the G-20 group of finance ministers and central bankers are holding their 2-day summit. The key topic under discussion there is likely to be resolution to economic imbalances, and to that end, Fed Chairman Ben Bernanke is to be included in a panel discussion today.
Market players will certainly scrutinize Chairman Bernanke’s commentary, looking for any indication of a change in the Fed’s optimistic outlook, especially given yesterday’s dismal unemployment figures.
Most analysts believe that the G20 will yield very little of note which would significantly affect the markets, and any comments from the key players might, at most, provide a brief blip to today’s closing day action. All in all, most analysts agree that this has been a positive week, with all of the major indices closing higher yesterday, striking new multi-year peaks.
Yesterday, the DJIA closed at 12,318.04, gaining 29.27 points and closing at the highest level since June 5th 2008. Over the last 20 trading days, the DJIA has seen a rise in 15 sessions; it has gained 6.4% since January 1st with 3.6% of that gain just in the month of February. Some analysts are suggesting that the light trading volume expected today may be blamed if the DJIA doesn’t again close higher.
The S&P 500 closed at 1340.43, up 6.06 points, striking its highest level in 32 months, boosted by yesterday’s release of the Philadelphia Fed’s Manufacturing Survey which showed significantly better than expected data from the manufacturing sector. Since February 1st, the S&P has gained 4.2%, and according to historical records, has doubled its value at the fastest pace since the 1930s.
Last, but not least, the NASDAQ also closed higher yesterday, gaining .21% to close at 2831.58.
On the eToro trading floor, ahead of the opening bell, sentiment among eToro traders on the DJIA was bullish by a 6 to 3 ratio in favor of buying. For NASDAQ traders, eToro traders’ sentiment was bullish by a 4 to 3 ratio on favor of buying. And on the S&P 500, sentiment among eToro traders was bullish by a 5 to 3 ratio of buying.
Copyright 2011 eToro Blog
This news item was republished from eToro Forex news website
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