Aug 25th 2014 – S&P 500 Hits 2000, Closes At Record High

Market View:

Happy first day back from 2 weeks at the cottage!  S&P 500 hits the 2000 mark for the first time in history.  Although it was light volume as traders are still largely away from their desks as summer comes to a close and back to school starts swinging into high gear.

We are now approaching the bullish part of the year as we head towards Christmas, so hitting 2000 now in my mind is a good omen and I foresee we will close higher by year end.

I don’t expect much in the way of a rally tomorrow after today’s wonderful action, but I don’t expect to see much selling either.  Only Russia is the spanner in the works for this market, and for now that seems to have gone quiet…

Market News:

U.S. stocks rallied on Monday, with the S&P 500 crossing 2,000 for the first time, lifted by a round of corporate deals and optimism that the European Central Bank would embark on further moves to stimulate the European economy.

Today’s gains are largely due to Mr. Draghi’s comments, his assurances that the European Union is as dedicated to keeping their markets as healthy as the US is, it gave the market an excuse to test the 2,000 level.

Burger King Worldwide is in talks to combine with Tim Hortons and moves its headquarters to Canada. Switzerland’s Roche Holding has agreed to acquire U.S. biotechnology company InterMune for $8.3 billion in cash.

Monday’s economic reports included data from the Commerce Department, which showed sales of new single-family homes fallingfor a second consecutive month in July.

A survey from financial-data firm Markit had the pace of growth in the nation’s services sector declining for a second month in August, while a gauge of U.S. economic activity from the Chicago Federal Reserve illustrating expansion above historical trends.

Tuesday:

Earnings: Best Buy, Bank of Montreal, Aruba Networks, Trina Solar, Smith and Wesson, Sanderson Farms, Bob Evans, WPP

8:30 a.m.: Durable goods

9:00 a.m.: S&P/Case-Shiller home prices

9:00 a.m.: FHFA home prices

10:00 a.m.: Consumer confidence

10:00 am Richmond Fed survey

1:00 p.m.: $29 billion 2-year auction

News Sources:  CNN Money & CNBC