Stock Market Alert: Understanding The Markets Bounce
Speculation continues to swirl over the next Greek bailout. After the massive decline in the markets yesterday, today there is more calm. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $127.93, +.91 (+0.72%). It appears the latest rumor is that a Greek aid package may be on its way regardless of them making the necessary cuts in spending. This is an obvious result of the market tremors felt around the world over the last few weeks. Ultimately Greece will default on its debt. Every intelligent person is aware of this. However, at this time it is about doing it in a manner that does not trigger another Bear Sterns or Lehman Brothers type collapse in the world.
While the markets are higher today on more calm in Europe, there was also some positive economic news in the United States. Jobless Claims were reported at 414,000, dropping 16,000 from the previous week. In addition, Housing Starts came in and Building Permits came in better than expected.
Key stocks in rally mode today include Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM) and Hewlett-Packard Company (NYSE:HPQ).
Watch Research In Motion Limited (NASDAQ:RIMM) after hours today as they are set to report earnings. The stock has been crushed in 2011, falling from a high of $70.54 to its current level at $35.35. This is just off the 52 week lows. The whisper number for quarterly profit is at $1.30. A good report may lift technology shares tomorrow. An ugly report would probably have little impact as it is expected.