Courtesy of John Nyaradi.
U.S. stock markets shake off European jitters to open the week with gains.
Through another volatile day, the Dow Jones Industrials (NYSEARCA:DIA) closed with an 85 point gain while the S&P 500 (NYSEARCA:SPY) climbed +0.6%. The only down index for the day was the Russell 2000 (NYSEAECA:IWM) with a 1.5 point loss.
“Risk on” assets climbed, as well, with gold iShares Gold Trust (NYSEARCA:IAU) climbing 2.4% and oil (NYSEARCA:USO) adding 1.7% on the outlook for better economic activity ahead.
Since risk is on everyone’s mind these days, an interesting look at the subject is offered by iShares Chief Investment Strategist Russ Koesterich in his latest article, Mapping Risk Today.
Europe remained in the headlines as the spotlight shifted from Greece to Italy (NYSEARCA:EWI) where borrowing costs soared to Euro highs and rumors and counter rumors of a government change swirled across Facebook and traditional media.
In Greece, George Papandreou is history and the country struggles today with a new government that can get things moving in time to avoid default while European Finance Ministers meet to bolster the size of their rescue fund.
Overnight, Europe and Asia were down.
At home, the Federal Reserve reported that consumer credit rose to $7.4 billion for September.
Tomorrow come economic reports from the small business sector and September job openings.
Bottom line: Major U.S. indexes (NYSEARCA:DIA) (NYSEARCA:SPY) continued to climb the “wall of worry” while always keeping an eye on Europe. So far, so good, and technical indicators show a still positive outlook.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
