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Stocks recovered most of yesterday’s losses.First the scoreboard:
Dow: 13,979, +99.2, +0.7 per cent
S&P 500: 1,511, +15.5, +1.0 per cent
NASDAQ: 3,171, +40.4, +1.2 per cent
And now the top stories:
- It was another quiet day for earnings and economics news. But stocks managed to recover almost all of yesterday’s losses on its march toward all-time highs.
- The ISM non-manufacturing (services) index fell to 55.2 in January. But it was nevertheless higher than the 55.0 expected by economists. “The New Orders Index decreased by 3.9 percentage points to 54.4 per cent, and the Employment Index increased 2.2 percentage points to 57.5 per cent, indicating growth in employment for the sixth consecutive month,” wrote the ISM.
- The CBO published its budget and economic outlook today. The good news is that they see U.S. budget deficits tumbling. Specifically, they expect the deficit to fall to $845 billion this year. This would be the first reading under $1 trillion in five years. They also estimate that the deficit falls to $616 billion in 2014 and as low as $430 billion in 2015.
- Two of the biggest bears on the market published new commentary today. But their bearish messages had hints of bullishness.
- Nomura’s Bob Janjuah continues to worry that the S&P 500 could soon head to 800. However, he warns that we are likely to see some “buy-the-dip” rallies before the big plunge happens. “As can be inferred from the above, in the medium term (2 quarters +/- 1 quarter), and as per the route map in my previous notes, I think risk can rally further. I continue to believe that the S&P500 can trade up towards the 1575/1550 area, where we have, so far, a grand double top.”
- Dow theory guru Richard Russell has alerted his subscribers that a Dow theory buy signal seems to be on the horizon. But he warns that there are other technical indicators that give him pause. “Wait, note that the relative strength index (RSI) is at its severe overbought zone for the first time in almost two years,” wrote Russell. SEE ALSO: The Stupidest Reason In The World To Sell Your Stocks >
- Chipotle announces quarterly earnings after the bell. Follow the release live on BusinessInsider.com.
- Don’t Miss: Pirate Ninja Gold Miners Are Going To War With Some Of The Biggest Companies In The World >
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