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Stocks rally as global tensions ebb, score weekly gains

  • Stocks rebounded with strong gains following the S&P 500's largest drop in three months, as investors decided the geopolitical tensions that stoked so much worry yesterday now appeared contained.
  • Google's strong Q2 report served as a bellwether for internet-related stocks, which enjoyed big gains and helped the Nasdaq to a 1.5% jump; the Nasdaq biotech index climbed 3%, and the small-cap Russell 2000 Index rose 1.4%.
  • The Dow was driven by gains in all but one of its 30 components; the notable laggard, which reported Q2 results that failed to wow investors, was GE.
  • Markets are holding up well despite global events, says Columbia Management's Jeff Knight: "A few years ago, you would have had contagion every time you had a bad news story... now there's more confidence in the system."
  • A total of 744M shares traded at the NYSE, which was heavier than average due to options expiration activity.
  • Treasury prices fell, with the yield on the benchmark 10-year note rising one basis point on the day at 2.487%.
Comments (16)
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    Global tensions ebbed? 20 Palestinians were killed in the first day of the invasion. Russia and USA are still threatening sanctions against each other.

     

    No, global tensions didn't ebb. The professionals in the market just realized that such tensions have little to no impact on the US stock market, and earnings rule. Yesterday the professionals panicked for no good reason other than that they are rather dumb.

     

    Today they stopped panicking likely because they took their meds. That's all there is. It was never about global tension. It was about professionals wetting their pants for no good reason.
    18 Jul, 04:29 PM Reply Like
  • aeroguy48
    , contributor
    Comments (718) | Send Message
     
    Hamas has fired how many rockets into Israel? A small number 1534.
    19 Jul, 01:28 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    So far 2 Israelis and 280 Palestinians have died in the fighting. So 1 for each 5 rockets so far.
    19 Jul, 01:40 AM Reply Like
  • jeezuz30
    , contributor
    Comments (379) | Send Message
     
    Those short Vix positions sure hurt on the 17th. As usual though, all it takes is 1 day and your almost back to normal.
    19 Jul, 08:58 AM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1047) | Send Message
     
    I don't know. I'm a "professional" as you say and I'm dam worried about all of this. I recently begun raising cash for clients that have been in the market for the last 2-3 quarters. I mean hello BUBBLE!
    18 Jul, 10:08 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    You should be worried. Professionals get paid to worry and underperform the market index. You have your liveliehood at stake. Just ignore low interest rates and superb earnings. Focus on the negative. That's what your clients are paying you for, to underperform.
    18 Jul, 10:19 PM Reply Like
  • jamesingram32
    , contributor
    Comments (632) | Send Message
     
    There is merit in what you say, macro, but....ironically, your self view seems to have a touch of the hubris once reserved for the 'masters of the universe' who I think you'd like to have no similarity with at all!

     

    By the sounds of it, your personal efforts must have delivered good results. I must make an effort to follow...
    19 Jul, 05:06 AM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    James, It is not a matter of my personal efforts, it is a matter of panicking because a commercial plane got shot down in Ukraine. What does that have to do with the US market? WWIII is not coming. This same nonsense happened in January when the Syria/Iraq thing happened and now that is old news and no one cares about it. People need to watch less TV and buy and hold.
    19 Jul, 12:15 PM Reply Like
  • Mr. Smith AKA Big Foot
    , contributor
    Comments (183) | Send Message
     
    We got a while before this bubble burst. A lot of industries are just now making a come back. Letting them spend for high priced items. Meaning there is a lot more liquidity floating around. Feds still have their investment pushing up the market. I do not see them taking money back for a very long time. The fed has themselves up against the wall. They will stop putting more in at the end of this year, but yea they wont be able to pull it back out with out killing the dollar bill.

     

    Like I always say watch raw material production, and watch housing prices. When people get stupid with their money get the heck out of the markets. Right now people are being pretty smart financially wise right now. So, nothing will scare me at this moment. I am riding the gravy train witch always follows drastic down turns.

     

    Peace and feel ok about investing right now. Worry in about 3 years.
    19 Jul, 02:22 PM Reply Like
  • newnnly
    , contributor
    Comments (246) | Send Message
     
    Macro Investor

     

    I agree that one should buy and hold. But just a little info about my own personal experience. I have a professionally ran portfolio and a self run one as well. Although both are doing well, my advisor continually outperforms me and that's including his fees. I don't know that all or most professional managers underperform, but I know that mine is really good at what he does and I have learned quite a lot by listening and watching him.
    20 Jul, 01:07 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    That's very good to know. Does he beat the S&P500 year after year?
    20 Jul, 01:08 PM Reply Like
  • newnnly
    , contributor
    Comments (246) | Send Message
     
    So far. But it's only been a few years for me. I get your point and I know some people can do much better on their own. I don't think I'm at that point yet Macro, but I'm working on it. I appreciate your comments.
    20 Jul, 01:16 PM Reply Like
  • Old_Bandycoot
    , contributor
    Comments (12) | Send Message
     
    I am thinking that this has something to do with the option expiration day. Whenever the indices stalled near resistance - it got bumped up. I think all those puts that were sold by the market- makers yesterday went 'out of money' as the indices rose and they were buying the index as the hedges were no longer required. My 2 cents.
    18 Jul, 10:12 PM Reply Like
  • Macro Investor
    , contributor
    Comments (9050) | Send Message
     
    Or it could just be that professionals realized that it is silly to worry about a plane shot down in Ukraine. Because they took their meds.
    18 Jul, 10:19 PM Reply Like
  • aeroguy48
    , contributor
    Comments (718) | Send Message
     
    Yea and obama came out looking strong and assertive today? Yawn
    19 Jul, 01:30 AM Reply Like
  • leopardtrader
    , contributor
    Comments (1183) | Send Message
     
    Mr. Market deals on facts not fictions and lies being peddled around. He knows that the plane crash was shot down unintentionally within a war zone. He knows that politicians and the media would pounce on it to make capital by spreading innuendos, lies and "geo-political games". He knows that just like the still missing Malaysian Airliner in the Indian Ocean nothing will come out of this. He knows that peace is Ukraine is vital and all sides and their supporters are guilty of this senseless killings and other killings going on there for so long now. He knows that all the taped conversations , "intelligence reports", "spy satellites", "radar detection" are all big lies to control the narratives. He knows both sides will not allow for true investigation and therefore we will never know the truth. He knows that what is happening in Gaza sadly is nearly worse than what happened in Ukraine ( per plane crash) at least taking solace that shooting down the plane was unintentional but Gaza is intentional. Mr. market remembered several incidents lke this before such as Russia shooting down Korean Airliner, US war ship shooting down Iranian passenger plane ..with massive deaths of innocent civilians and nothing was done about it.

     

    Mr Market thus must move on with own life navigating this complex world
    19 Jul, 05:24 AM Reply Like
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