The market was true to form on Wednesday morning as it gapped down on the GOOG news and proceeded to rally them from there. The late morning showed little in the way of movement but after a brief drop right after noon, the Dow moved up strongly to close nearly 90 points on the day. Today the Dow was leading the pack which is not necessarily the way the bulls would like it. We could see the Dow peak its head above that 11K figure again only to go there without confirmation from the broader market, and we are speaking of the other major indexes we follow, NASDAQ and the SP500.
The big news for today was the “Blackberry” news which suggested that RIMM could possibly get out from under the patent infringement case it has been under for a while now. On that news, RIMM rallied about 10%, no fear there. Even GOOG managed to rally back up above 400 by day’s end so not much fear there either. We had a notion that GOOG’s news might have a negative impact on the overall market but apparently everyone is ok with the minor miss that GOOG had. And, the SOTU (State of the Union) address on Tuesday evening didn’t spark any consternation on the street either, not to mention the little interest rate bump the Fed did on Tuesday. Nothing seems to matter to anyone.
So, that’s about all there is for Wednesday. Remember there is another event this week that could move the market—but probably not—and that is the jobs report out on Friday. We’ll talk to you tomorrow and don’t forget to Be careful and Be selling this rally.
Dow Industrials: 10,953.95 +89.09