Wednesday, July 20, 2011

Market News - 19 July 2011

Dear fellow traders,

The US stock market experienced one of their best days of the year on Tuesday, 19 July 2011.

The Dow Jones Industrial Average had its biggest one-day gain in 2011. The index rose about 202 points, or up 1.6%, to close at 12,587.42. The corresponding S & P 500 index rose 21.29 points, or 1.6%, to close at 1,326.73, its best day since 3 March 2011. The Nasdaq was up almost 62 points, or 2.2%, to close at 2,826.52.

The market was buoyed by good quarterly earnings results from US companies like Coca-Cola, IBM, Intuitive Surgical and Apple Inc.

News that US politicians were making some progress towards a plan to reduce the deficit and raise the $14.3 trillion debt limit to avoid a default also offered some boost to the market. However, investors were also keeping an eye on Europe’s debt crisis ahead of a meeting of the European Union leaders in Brussels to discuss a 2nd financial bailout plan for Greece.

Yours Truly,

Tony Chai