Thursday, July 22, 2010
Stock Market Commentary:
Stocks rallied smartly on Thursday as investors digested the latest round of earnings and economic data. Volume, an important indicator of institutional sponsorship, was reported slightly higher than Wednesday’s totals on both exchanges while the major averages ended unanimously higher. Advancers led decliners by nearly a 6-to-1 ratio on the NYSE and by nearly a 5-to-1 ratio on the Nasdaq exchange. New 52-week highs solidly outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange. There were 23 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, higher from the 18 issues that appeared on the prior session. For the rally to have ongoing success it will be critical for a healthy crop of leaders to continue showing up hitting new 52-week highs.
Stocks Rally On Healthy EU Economic & U.S. Earnings Data:
It was encouraging to see stocks rally after the latest round of earnings were released. Overnight, stocks rallied after the eurozone reported stronger than expected economic growth. This helped allay concerns of an economic slowdown that may derail the global recovery. In the US, United Parcel Service Inc. (UPS +5.23%) and AT&T Inc. (T +2.27%) were some of the well-known companies that reported solid Q2 results. The dollar fell which also helped oil top $79 a barrel and copper rally from deeply oversold levels. Copper climbed over +2% to $3.1555 a pound in New York, which was the highest level since May. Investors are not waiting for Europe to release the results of their much anticipated stress tests which are slated to be released on Friday.