Will Stocks Sell-Off Before the New Year?

FedEx Corporation (NYSE: FDX ) promised to deliver, and both the Dow
Industrials and S&P 500 responded with new two-year closing highs. And the
Philadelphia Federal Reserve Bank helped push prices higher with a generally
optimistic economic report. In corporate news, FDX rose 2% despite missing its
quarterly revenue and earnings forecast. But the company raised its annual
earnings forecast to $5 $5.30 a share for 2011, up from analysts consensus of
$5.20, and said that the global economy was healthy, as well. United Parcel
Service, Inc. (NYSE: UPS ) responded to its chief competitors optimism by
gaining 2.09%.  But MasterCard Incorporated (NYSE: MA ) fell 10.32% and Visa
Inc. (NYSE: V ) lost 12.67% as a result of the Feds proposed change in rules
that would cap debit card swipe fees to 12 cents per transaction. General Mills,
Inc. (NYSE: GIS ) rose a fraction following a positive quarter, but profit
margins fell as a result of higher commodity costs. Pier 1 Imports, Inc. (NYSE:
PIR )‎ fell 2.3% after missing analysts Q3 estimates. In economic news, the
Philly Fed said that its index of general business activity had its best month
since April 2005, but the employment index indicated that hiring had slowed and
that inflationary pressures are increasing. It went on to say that the
percentage of firms indicating that their costs would be higher in 2011 was
greater than the percentage reporting that their costs would be lower. And it
added that employee benefit costs are expected to rise by 8.6%, wages by 2.1%,
and other related costs by 2.3%.   Treasury bonds rose with the 10-year note at
a yield of 3.475% and the 30-year at 4.58%. The euro rose slightly as the
markets awaited the results of a European Union summit called to provide a
permanent solution to Europes debt crisis. In late trading the euro was at
$1.3232, up from Wednesdays close of $1.3221. At the close, the Dow Jones
Industrial Average gained 42 points at 11,499, the S&P 500 rose 8 points to
1,243, and the Nasdaq gained 20 points at 2,637. The NYSE traded just over 1
billion shares with advancers ahead of decliners by 2-to-1. The Nasdaq exchanged
473 million shares with advancers ahead by 2.2-to-1. Crude oil for January
delivery fell 92 cents to $87.70 a barrel, and the Energy Select Sector SPDR
(NYSE: XLE ) gained 37 cents to $66.16. February gold settled down $15.20 to
$1,371 an ounce. The PHLX Gold/Silver Sector Index (NASDAQ: XAU ) lost 2.91
points, closing at 218.29. What the Markets Are Saying The intermediate-term and
long-term trends remain very bullish, so investors should stick with their
current portfolios and buy on dips.