Market Update: Stocks Rally
The markets are rallying today as investors are scooping up cheap stocks. After a six day fall, and financial stocks hitting multi year lows, a bounce day seems to be in the cards. The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) is trading at $121.50, +1.20 (+1.00%)
while the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is trading at $55.54, +0.15 (+0.27%).
The markets are holding their gains today based mainly on the bank stocks and transports. The financial plays have been killed lately but finally are seeing an oversold bounce. In addition, while the Dollar opened higher, it has faded all day long. As the Dollar has faded, it has pushed the markets slowly higher. Remember, during market hours the markets trade inverse to the Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.18, +0.05 (+0.24%). The key to this helping the markets is not that it is up, but more that when the markets opened today, the UUP was at $21.24 and has faded all day.
Technology is definitely the weakest sector. Apple Inc. (NASDAQ:AAPL) and Google Inc. (NASDAQ:GOOG) are both slightly negative, keeping the Nasdaq from having big gains.