Stocks again were mixed as the Dow gained while the NASDAQ fell. At the close the Dow was up 56 points on heavy trade to close at 17,947. For the week the Dow lost about 60 points or 0.37% as it remains in a tight trading range.
Art “Col.” Hogan, chief market strategist at Wunderlich Securities said that “Greece is certainly the focus as negotiations this weekend could yield a big decision”. Like Col Hogan, most gurus seem to feel that Greece is in a weak position to negotiate and that even if no deal is reached the damage from a default and euroexit will be minimal as markets have had time to prepare for the worst. Greece entered the union in 2001 and in 2004 it admitted that it had misrepresented its tax collections, debts and general financial standing. Maybe the EU should have kicked them out at that time but instead they gave them a pass and lent them more money instead.
Tech stocks were lower today as chip maker Micron fell almost 18% thanks to a weak earnings report. Micron’s results were off due to slow PC sales and weak pricing for memory chips.
Meahwhiel shares of Nike shot higher thanks to a strong earnings report.
US consumer spending was up nicely and rose by 0.9% in May beating expectations calling for a seven tenths gain. This is the largest increase in nearly 6 years as strong demand for cars and other big ticket items indicate that households might finally be spending that long lost windfall from lower gasoline prices. The Commerce Department also revised the April number higher to 0.1%. This news capped a solid month of economic reports for May.