DJIA rises 51 (0.5%) to 10337, S&P 500 adds 4 to 1096, Nasdaq Comp gains 11 (0.5%) to 2184. IBM, 3M drive Dow’s gains. Volume, as it has been for a while, is light. Crude drops sharply, and gold continues its ride downtown. Dollar slips against the euro and yen.
For stocks, all in all it’s basically what’s called an “inside day,” with the S&P especially stay within support and resistance levels. Of course, the longer it gets wound up inside the ranges, the sharper the eventual breakout will be. The only problem with that is, nobody knows which direction the breakout will travel.
“The feel is that we are on the verge of a significant breakout in the markets,” UBS’ Art Cashin wrote this morning. “We need to determine the direction.”
Spain the latest sovereign to get a downgrade, but the effect on stocks is more muted than the reaction to the news over Greece yesterday, or the panic over Dubai over Thanksgiving.
Wholesale inventories rise for the first time in 14 months, a sign inventory destocking may be over. It’ll be interesting to see if business inventories confirm the trend.
And CNBC reports Citi plan to repay its $45B in TARP loans with proceeds from $20B raised through an equity offering.