Markets Digest As Tech Stock Leaders Roar
The market is pausing today after one of the biggest week long rallies in history. The Dow Jones Industrial Average gained over 6% last week, its biggest one week gain since July 2009. Today, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $133.52, -0.40 (-0.30%). Volume is extremely light as many traders are extending their July 4th holiday, one extra day. One of the main reasons for the slight market weakness is due to the Dollar. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.25, +0.05 (+0.24%).
While the markets seem to be pausing, some key technology stocks are continuing their surge. The leaders in the tech sector were up big last week and are continuing their run. Apple Inc. (NASDAQ:AAPL) is trading at $348.70, +5.44 (+1.58%), Google Inc. (NASDAQ:GOOG) is trading at $531.83, +10.81 (+2.07%) and Amazon.com, Inc. (NASDAQ:AMZN) is trading at $212.71, +3.22 (+1.54%). The only stock at new 52 week highs in the group is Amazon.
This strength in technology is based off of a renewed positive outlook for the economy after last week Greece was essentially bailed out. In addition, new money is flowing into the markets at the start of the third quarter. This usually has a short term positive impact as well.