A week of gains, and not small ones either. The question on people’s mind now is what’s behind the rise and will it last.
Much of the rally appears to have been driven by activity in the drugs sector. A flurry of mergers this week sparked gains that overcame downward momentum in energy. Also, a few of the big banks came out and said they actually made money in the first two months of the year.
Now, making a few million bucks at the very start of the year after being rescued by government billions isn’t exactly a signal that all is well with the financials, but after the battering suffered by the likes of Citigroup Inc. (C), Bank of America Corp. (BAC) and Morgan Stanley (MS), it is apparently enough to spur some buying. As to whether the rally will last or merely sets the stage for a new leg lower, stay tuned.
The Dow Jones Industrial Average (DJIA) rose 53.92 points or 0.8% on Friday to close at 7,223.98. For the week the index was up 9%. The Nasdaq Composite Index (COMP) added 5.4 points or 0.4% to close at 1,431.50 on Friday, a 10.6% gain for the week. The broader S&P; 500 Index (SPX) rose 5.81 points or 0.8% to close at 756.55 on Friday. The index’s gain for the week came to 10.7%.
Maybe the market trend will continue into next week. Hopefully, the combo of rain this week in the South and temps in the 70’s next week will kick start the season into high gear.