It looks like the positive "January Effect" is still in play as the market rallied to close with two of three major indices up, while gold added 9.9 points, oil lost 1.7 points, and the euro continued its slide against the dollar.
We had an amalgamation of macro reports, with possibly the most notable an analyst note from Morgan Stanley predicting a slowing economy in the first half of 2012 leading to a new round of quantitative easing by the Federal Reserve. Talk of a slowdown flies in the face of most of the recent economic reports including better jobs data, improved stability in Europe, and a healing housing market.
With that in mind, it is encouraging that the Dow Jones Industrial Average
Inside the Dow, it was no surprise that given the positive economic indicators on one hand and on the other an increased likelihood that the Fed will come to the rescue with QE3 if those indicators prove illusory, the big gainers were financials. Bank of America
The best-performing stock of all all today belonged to the Nasdaq: Prostate-cancer vaccine maker Dendreon
All told, it appears the market is continuing a positive trend to kick off the year. It's worth watching with a close eye to see how the market closes this week and this month. If January ends on an up note, past trends have it foreshadowing a strong annual performance.
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David Williamson owns shares of Dendreon, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of JPMorgan Chase, Dendreon, and Bank of America. Motley Fool newsletter services have recommended creating a write covered strangle position in American Express. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.