July 24th 2014 – Can the S&P 500 top 2,000?

Market View:

The big risk for Europe’s recovery and continued growth in the US markets remains an escalation in the dispute with Russia over Ukraine.  2 military planes being shot down yesterday emphasised the rebels ability to shoot down anything including commercial airlines.

The west seem to think that Putin is not doing enough to quell the unrest.  Whatever the outcome in the coming days and weeks, there is certainly more and more pressure being applied to the Russian Leadership.  Something has to give.

I would not be surprised to see another flat day tomorrow, which will still see another weekly gain for the overall market.  But as the Title of this post suggest, I think it is inevitable that 2000 will come and go.

Market News:

U.S. stocks closed little changed on Thursday, with the S&P 500 touching its record high, as investors considered mostly upbeat earnings from companies including Ford Motor and Facebook and mixed economic reports.

Facebook climbed to a record after the social network trounced estimates for quarterly profit and revenue; Ford shares rose after the auto manufacturer reported second-quarter results. Caterpillar shares fell after the maker of earth-moving machinery reported a second-quarter earnings beat, but fell short on revenue.

General Motors shares fell after the car maker reported a lower-than-expected second-quarter profit, and Wal-Mart Stores slid after the discount retailer said CEO Bill Simon would leave the company.

Thursday’s economic reports included Commerce Department figures showing sales of new homes fell 8.1 percent in June.

A separate government report had jobless claims coming in at 284,000 last week, less than the 308,000 estimated by analysts.

European markets were mainly firmer, as were most Asian markets, although Japan’s Nikkei slipped.

Friday:

Earnings: Aon, Xerox, Statoil, Black and Decker,Tyco,AveryDennison,Moody’s, Covidien

8:30 a.m.: Durable goods

News Sources:  CNBC and CNN Money