Stock Market Update: Pro View

Technology is leading the way today with Apple Inc. AAPL taking charge. Apple Inc. is surging 2.81% to $249.14 +$6.82. This stock alone is helping to carry the Nasdaq slightly higher. Google Inc. GOOG is also advancing nicely today with a gain of 2.81%. The stock is trading at $485.31 +$13.26. Aside from technology, the markets seem to be somewhat on pause and still jittery. The Dow Jones Industrial Average and the S&P 500 are lower on the day. The real kicker today seems to be the Euro and Dollar once again. The Euro is having a brutal day to the downside while the U.S. Dollar is surging. This is putting pressure on commodity stocks, and most sectors aside from technology. Amongst financial stocks, JPMorgan Chase & Co. JPM is trading lower while Goldman Sachs Group, Inc. GS is flat on the day. The rest of the financial sector is mostly lower as well. Commodity stocks are struggling with the stronger Dollar. With oil under pressure, stocks like Exxon Mobil Corporation XOM and Chevron Corporation CVX are being hit. These are two major components of the Dow Jones Industrial Average, thus putting the index under weakness. The analysis goes something like this. As long as the Euro is weak, the markets will remain weak. If the Dollar can fall, the markets will surge higher as commodities get a bid. Financial stocks had a solid day on Friday as financial regulation is slowly being realized and accepted. Their action can be looked at as consolidation. If Europe can quiet down, markets will rally. If not, the markets will continue to sell with a possible 25% correction due. The short term bias last this week is slightly positive going into the Memorial Day holiday weekend. Early next week, light volume suggests the same. Selling will most likely continued after that. Gareth Soloway Chief Market Strategist www.InTheMoneyStocks.com