The Dow rallied for the first time in 7 days thanks in part to a pop in oil prices which boosted energy stocks. At the close the Dow gained 41 points to close at 18,355. The only issue however was the low trading volume which indicates an absence of big players. Several gurus were on CNBC today talking about how the markets are ripe for a pullback. While they could be right it pays to remember the old saying “the experts were surprised”.
As the 2nd quarter US earnings season winds down the focus of investors seems to be shifting back to Europe and the Middle East. Yesterday Deutsche Bank, the largest bank in Germany, put out a research piece in which it said that any move by the Federal Reserve to raise interest rates would be “a bad policy move”. This type of commentary is uncommon for a large foreign bank but it might be indicative of Germany’s worry that any slowdown in the US economy would be particularly hard on German exporters who have already seen slowdowns in Asian and European exports. In the Middle East, Saudi Arabia leaked information that it had injected $4 billion liquidity into its banking system as it struggles with deficits and falling oil revenues.
Seattle based data visualization company Tableau software reported earnings that were mixed as revenue meet expectations and profits that did not. Since the company shares are priced for perfection the news sent shares lower. Revenue was up 32% while net income came in flat and posted a small loss. New customer signups hit a high as more firms make the move to real-time data visualization to replace legacy spreadsheet software.
Oil rebounded a bit today and regained the $40 price level. Gold fell $8.20 an ounce to at $1,364.