Indexes gapped up slightly at the open after Putin said some “positive” things about Ukraine, and churned higher most of the day. The S&P 500 and NASDAQ both gained 0.43% as we continue this oversold bounce from last Thursday’s close.
In a speech in Crimea, which Russia annexed from Ukraine in March, Putin said: “We will do everything in our power so that this conflict is ended as soon as possible, so that the blood can stop flowing in Ukraine.”
The action over the past week has been more similar to the rallies of 2013 than what we’ve seen most of 2013. U.S. stocks followed European stocks, which closed higher on Thursday despite flat GDP growth across the Eurozone, below expectations, and the first contraction in over a year of Germany’s economy.
The NASDAQ has a clearer path upward right now but of course both indexes generally move together. The S&P 500 will soon be at a key level around 1970 which is the trend line it broke during this mini correction. The action there should tell us a lot – if this is a short term bounce or we are back to full on rally mode.
We’ve seen the NYSE McClellan Oscillator swing from -80 to +35 in a week; now that’s a move! One more solid up day and we could be in overbought conditions.
In the commodities space, oil continues its free fall.
Shares of Cisco Systems Inc (CSCO) fell after the network equipment maker gave a tepid outlook for its current quarter and announced job cuts despite reporting revenue that beat expectations.
Shares of Boeing Co (BA) rose after the company said demand for its commercial jetliners was very strong and signaled it is getting close to deciding whether to further accelerate output.
Shares of Monster Beverage (MNST) soared 22% to the $87 area in extended-hours trading on news that the energy drink maker entered a long term partnership with Coca-Cola.