Expectations of a deal this weekend in Europe have been high. A major meeting had been scheduled with the leaders of Europe. However, in the last twenty-four hours, disagreements have surfaced and that meeting is now in question. The markets continue to be on pins and needles.
In addition, while volume remains light today, there is no Federal Reserve POMO scheduled. POMO stands for permanent open market operations. This is where the Federal Reserve buys long term treasuries, infusing capital into institutions. It is then assumed that the institutions use that money to buy the markets, artificially inflating them. In general, light volume mixed with POMO is a recipe for upside. Today there is no POMO.
Stocks that have been reporting earnings have generally fallen. Wynn Resorts dumped nicely on a miss while American Express Company (NYSE:AXP), eBay Inc. (NASDAQ:EBAY), AT&T Inc. (NYSE:T) all reported solid results but are nicely lower on the day. Even good results cannot keep a stock higher if it has rallied significantly in the last two weeks.
Gareth Soloway
InTheMoneyStocks
