The recent panic selling early in recent market sessions has been a follow-through to the perception that results from the administration are not in accordance with market expectations. The President promised healthcare reform, tax cuts and infrastructure spending. The health care bill was ‘returned to sender’ last week as polls showed that only 17% of the country was behind it. This setback begs the question of the ability of the administration to get further legislation going and could prove to be more difficult than originally thought.
After the DOW had ended lower yesterday for the eighth session in a row yesterday, the bulls came back and ended the streak today. At the closing bell, the DOW was up 150, the S&P 500 climbed 16, and the NASDAQ added 34 points. The DOW was in brief danger of going for nine losses in a row which would have been the longest downward daily move since 1978…but in a classic “Turnaround Tuesday” pattern the bullish crowd finally took control. The release of the March Consumer Confidence report showed an unexpectedly strong gain of 125.6 from 116.1 from the prior month…the highest level in more than 16 years. The January Case-Shiller Home Price Index reported an increase of 5.7% to a three-year high. This increase gave the bulls more reason to head higher. AMZN and TSLA continued their recoveries from yesterday plus PCLN opened 20 points lower yesterday and finished up nearly 1 % today.
Donald M. Selkin
These are excerpts from Don Selkin’s Daily Market Notes, abbreviated and updated with permission from the author. Don Selkin is the Chief Market Strategist at Newbridge Securities Corporation, member FINRA/SIPC and provides the Fair Value analysis for CNBC each morning. The commentary provided in this Market Letter is intended to provide timely market analysis and should not be considered a research report. This Market Letter may contain, and is limited to: Discussions of broad based indices; Commentaries on economic, political or market conditions; Technical analyses concerning the demand and supply for a sector, index or industry based in trading volume and price; Statistical summaries of multiple companies’ financial data, including listings of current ratings; and, Recommendations regarding increasing or decreasing holdings in particular industries or securities. This Market Letter does not make a financial or investment recommendation or otherwise promotes a product or service of the firm. This Market Letter contains only news, facts, and commentary on information previously reported from a news source believed to be accurate and reliable by the author. These news sources include the following: Bloomberg Financial, Reuters, and the Associated Press.