U.S. investor optimism reached across the pond yesterday and as a result, most European and Asian markets closed with moderate gains on Thursday. In even more good European news, the Euro continued its rise while the dollar declined. Unfortunately, central banks in Europe are not betting on these gains as indicators of economic recovery and they remain concerned that the debt crisis in Europe could result in bank losses through 2011.
None of the good news on the European front seemed like it was translating to U.S. investors this afternoon as the Dow Jones Industrial Average lost 74.52 points by 12:30 PM, erasing the early morning gains it had experienced.
Retailers reported sales gains of 2.5% in May, which is now the 9th consecutive month for retail gains. This news helped push the Nasdaq up 21.96 points to close at 2,303. The news that states are running out of money in their budgets and will need to do some major cutting in 2011 was not enough to dampen investor’s spirits and the Dow followed the
