Once again, stocks started strong with Dow gaining over 100 points. By the end of the day, Dow was down 171, decliners ahead of advancers almost 3-2 and NAZ pulled back 35. The 4 leading new lows were : SGP, BMY, WYE & HSY; 3 big drugs & Hershey, quite a combination. Overall, there were 82 new lows. The yield on the Treasury bond is back to 3.58% & gold is over 900. Worries continue, traders do not want to be long over the weekend.
There is a lot to look forward to next week starting with a bunch of earnings. Earnings so far have been surprisingly good if you ignore the ugly financial earnings (with huge write-downs) which are largely reported. The president addresses congress next week. Speaking of congress, they will start considering the tax package & that may not go quickly in the Senate. The FED has it's meeting, the only question is whether they owe the markets 25, 50 or 75 basis points. Given this week's rebound, I think they will lean towards the low number.
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