Stock and Commodities Review

Positive guidance from tech bellwether IBM triggered huge gains among global tech shares on Tuesday. The optimism than carried over to broader market as major equity indexes were all very much in the green. IBM shares rallied nearly $10 to close at 185.21 after it raised its full year earnings forecast to $12.87/share.

Following IBM, the NAsdaq1 gained 2.22% to 2826, while the S&P 500 and Dow 30 each rallied by 1.6%. Over in Europe, the CAC 40 and DAX were each up around 1.2% while the FTSE added 37 points to 5790. Also higher was Coca Cola which added $2.20 and closed at a 10 year high of 69.32. Looking ahead to Wednesday, tech shares are expected to continue leading the markets, as traders respond to after the close earnings reports from both Apple Computers and Yahoo.

Commodities

After ten straight winning sessions, prices of Gold finally headed lower today as risk buying caused traders to sell the precious metal. As such, prices which were holding steady above 1600, dropped around $15 to 1585 in afternoon trading.

Overall, commodities were higher on the overall risk buying in the market. Crude Oil prices rallied around $2.00 to just above 98/barrel. Also higher were agricultural commodities, as Corn, Soybean, and Wheat prices all found buyers after a week of selling. It remains to be seen though whether Tuesday’s strength was a result of bargain hunters jumping in or the beginning of another rally.