Just a couple of quick notes on Monday’s markets… The Dow gave the broader market a chance to catch up a little as the NASDAQ Comp rallied for nearly a percent while the Dow managed a quarter percent move. The Russell 2000 managed to make a new high for those of you in that category. The SP500 closed just under its 2006 high. This time of the month generally gives the bulls a breath of air and Monday was no exception.
The news on RIMM was a little negative but the stock only dropped about 2.5% during the day. The court case has been bounced around in the stock market just like the price of the stock itself. The owners of the stock do not feel much pressure to sell thinking that the courts would never allow the Blackberry to go dark in the US.
To our way of thinking, the housing number was the most important of the day and it was not positive. The new home sales for January dropped about 5% but more important was the inventory of unsold homes which pushed to a ten year high. The housing market has peaked and is already heading down but the price action is a bit delayed. Tuesday brings the existing home sales and we will be watching for that. The consensus is for a 1.5% rise in these sales. We’ll discuss the results of these two data points on Tuesday evening. Until then… Be careful out there.
Dow Industrials: 11,097.55 +35.70