The Closing Look

Stocks rallied nicely on Wednesday helping the Dow Jones Industrial Average and benchmark S&P 500 jump above resistance of their latest range. Before the open, JP Morgan (JPM) reported earnings that beat greatly reduced estimates. Peabody Energy (BTU) filed for bankruptcy protection in the wake of a huge crash in coal prices. Overnight, China said exports beat estimates which bodes well for the global economy. Oil prices were quiet as the US dollar rallied. Saudi oil minister, Ali al-Naimi, said he will not cut production. This came one day after inter-fax said a production freeze would likely occur. In the U.S., retail sales fell -0.3%, missing estimates for a gain of +0.1% which strengthened the case for more easy money from the Fed.

Gary’s Thoughts: JP Morgan…earnings down 14%, revs down 2%…remember what we told you about everyone already knowing and reporting earnings will be bad. We must also add Steve Wynn just bought more stock…73,000 shares. This after we reported to you his massive buying in January and February. A CEO averaging up is normally a good sign. Rest of market has now edged above resistance we outlined for you. Let’s hope it holds as we continue into earning’s season.