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Zacks #1 Stocks on the Move 05/22/2013

Company Name Symbol %Change
ALLIANCE FIB AFOP
9.31%
SONIC FOUNDR SOFO
7.77%
VELTI PLC OR VELT
7.58%
TRI TECH HOL TRIT
6.62%
A M R CP AAMRQ
4.52%
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--

Friday Rally... Kind Of

US stocks flashed some green Friday on the backs of strong earnings reports from GE, McDonald's and Microsoft. Yet right after lunch investors got some indigestion. From there the rally mostly frittered away by the close.

Why? You knew I was going to say Europe... so why did you ask? ;-)

Spanish ten year bonds crept higher to 5.96%. Italian bonds also increased up to 5.66%. These are substantial moves in the wrong direction from the March 1st levels of 4.87% and 4.95% respectively. This obviously has folks like the IMF concerned. Or why else are they so actively getting $400 billion in fresh bailout pledges???

I still suspect that the Europeans will contain this problem given how much money, time and assistance they are getting from other nations. However, that does not mean the problem will "go gentle into that good night".

This is why the market is having a hard time advancing even with impressive corporate earnings on display. And that is why I have taken on a slightly more defensive posture of late.

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Steve Reitmeister (aka Reity... pronounced "Righty")
Executive VP, Zacks Investment Research

 

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