dow jones futures outlook week january 23 2012

dow jones futures outlook week january 23 2012 : The Dow rose 96.50 points to close at 12,720.48 - a gain of 0.8%. Without the huge gains in IBM and Microsoft, the Dow would have risen just 24 points. The S&P 500 index inched up 0.88 to 1,315.38. Both the Dow and S&P ended the week with gains of more than 2%.

Safety is the only reason to hold those securities. Remove the European contagion risk and that money will move out of bonds into stocks. I think some of this year’s buying reflects investors anticipation of that

We are going into the weekend with a Monday meeting of the European Finance Ministers and a Wednesday meeting of the World Economic Forum. Both will feature press coverage and commentary by pundits that could cast a pall on global stock markets.

Without the “European” problems, our stock markets would press upward, gaining traction asmoney moves in from the sidelines. It may do so even if Europe’s problems continue.

If buyers just step back for a few days to get a better handle on what comes out of next week’s meetings, the DJIA could slip back to 12,410 (S&P 500: 1289). For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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