June 25th 2014 – Bouncing Back: US Stocks Finish Higher

By John Bannan | June 25, 2014 |

Market View:

Well, we got the bounce I was expecting, and it was a good one.  The S&P is just shy of a new all time high.  I suspect that we will see little movement tomorrow after a rebound like this one.  Jobless claims report at 8:30am may help dictate the market direction in the morning.

The market could have very easily fallen over again today.  It is somewhat impressive that this bull just wants to keep on marching higher.  We may flatten out a bit here for a few days.

Market News:

U.S. stocks rose on Wednesday, with the Dow and S&P 500 bouncing back after a two-day decline, as Wall Street wagered the economy is rebounding from its worst quarterly performance in five years

Equities had initially fluctuated amid data that had June expansion in the service sector countering worse-than-anticipated reports on the economy’s performance and an unexpected drop in orders for durable goods in May.

Another report had durable goods declining 1.0 percent last month.

Also helping sentiment, a survey found the U.S. services sector in June expanded at its fastest clip in more than four years.

International:  The Dubai stock market suffered a dire tumble to start the week, as concerns about continued turmoil in Iraq damaged investor confidence and one of Dubai’s biggest construction companies reported trouble. However, the benchmark Dubai Financial General Market Index recovered about 6% on Wednesday.

Russia’s main Micex index declined by over 2% on reports that the West might slap more sanctions on Russia.

The Micex has been on a wild ride this year, dropping by over 20% and then fully recovering as worries about the Ukraine crisis and sanctions intensified and then receded.

All major European markets closed lower Wednesday. Asian markets ended in negative territory.

Thursday

Earnings: Accenture, ConAgra Foods, Lennar, McCormick & Company,Winnebago Industries, Nike, Shaw Communications,Steelcase,Worthington Industries

8:30 a.m.: Weekly jobless claims

News Sources:  CNBC and CNN Money