This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fireworks Look Fleeting in Coming Week

NEW YORK ( TheStreet) -- With the July Fourth holiday coming in the middle of the week, market watchers anticipate Friday's rally could continue to build early on but caution that the euphoria over latest Europe's debt crisis plan may not last much longer than that.

"The markets could continue to rally and have been looking for a reason to rally," said Adrian Day, president of Adrian Day Asset Management. "They were looking for a) movement in Europe and b) stimulus, and they got both."

The Dow Jones Industrial Average soared nearly 278 points, or 2.2%, to close at 12,880 on Friday. The blue-chip index rose 1.9% for the week and finished June with a gain of nearly 4%. Despite a 2.5% decline in the calendar second quarter, the Dow is now up 5.4% so far in 2012.

The S&P 500 surged 33 points, or 2.5%, to finish Friday at 1362, right at its high for the day. The benchmark index advanced 2% for the week, putting it up 4% for the month. Although the S&P 500 fell 3.3% during the quarter, it's appreciated 8.3% year-to-date.

The Nasdaq jumped nearly 86 points, or 3%, to settle Friday at 2935, logging its fourth straight weekly gain. The index booked a 1.5% rise for the week and added 3.8% in June. For the year, the Nasdaq is up 12.7%, but it lost 5% in the calendar second quarter.

In part because of the midweek holiday, the coming week could be one of the lowest volume stretches of the year, according to Uri Landesman, president of Platinum Partners, who thinks cumulative trading action will be in the bottom five for 2012. Landesman is bearish about how the next few months will play out.

"This summer people will think [their money] is better in [their] mattress than in the stock market," he said.

Landesman expects the S&P 500 to trade within a range of 1290 to 1360 in the short term and says the overall trend will be downward further out, predicting the S&P 500 could "easily" correct by 150 points into Labor Day with the action marked by summer's characteristic low volume and high volatility.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AYI $242.18 -0.05%
ISCA $33.26 -0.21%
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs