NYSE Dow Jones finished today at:

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street ended a choppy session with a loss, but showed its resilience as investors heard answers to some of their big questions about banks.

The major indexes closed down about 1 percent Wednesday after recovering from steeper losses early in the day, continuing the volatile trading that has buffeted the market this week.

Investors had some of the uncertainty about the troubled banking system lifted when the Treasury Department confirmed it will buy preferred shares from banks that can be converted into common shares. The government also began to "stress test" the banks to determine their solvency if the economy worsened, and Federal Reserve Chairman Ben Bernanke rejected for the second straight day the notion that banks could be nationalized.

The NYSE DOW closed LOWER -80.05 points -1.09% on Wednesay February 25
Sym Last........ ........Change..........
Dow 7,270.89 -80.05 -1.09%
Nasdaq 1,425.43 -16.40 -1.14%
S&P 500 764.90 -8.24 -1.07%
30-yr Bond 3.6010% +0.1070

NYSE Volume 8,692,239,000
Nasdaq Volume 2,440,818,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,848.98 +32.54 +0.85%
DAX 3,846.21 -49.54 -1.27%
CAC 40 2,696.92 -11.13 -0.41%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,461.22 +2.65%
Hang Seng 13,005.08 +206.56 +1.61%
Straits Times 1,616.79 +2.35 +0.15%

http://finance.yahoo.com/news/Stocks-end-down-as-weeks-apf-14470873.html
Stocks end down as week's back-and-forth continues

Stocks finish lower; investors show resilience, but can't shrug fears about banks, economy

* Madlen Read and Sara Lepro, AP Business Writers
* Wednesday February 25, 2009, 5:01 pm EST

NEW YORK (AP) -- Wall Street ended a choppy session with a loss, but showed its resilience as investors heard answers to some of their big questions about banks.

The major indexes closed down about 1 percent Wednesday after recovering from steeper losses early in the day, continuing the volatile trading that has buffeted the market this week.

Investors had some of the uncertainty about the troubled banking system lifted when the Treasury Department confirmed it will buy preferred shares from banks that can be converted into common shares. The government also began to "stress test" the banks to determine their solvency if the economy worsened, and Federal Reserve Chairman Ben Bernanke rejected for the second straight day the notion that banks could be nationalized.

The market managed to hold on to some of Tuesday's sharp gains, which saw a 236-point jump in the Dow Jones industrials, and that's a good sign, according to Scott Fullman, director of derivatives investment strategy for WJB Capital Group in New York. "We're not going to go from bear to bull in one day."

Investors remain worried, however, about the recession deepening, dividends disappearing and how the government will get toxic assets off banks' books.

"We're seeing a lot of nervousness, and that's breeding volatility," said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. "We're definitely in a bottoming process of the market, but it's not coming as quickly as some people would like."

Investors appeared disappointed that a late-afternoon speech by President Barack Obama after he met with Treasury Secretary Timothy Geithner revealed few additional details about their plan for toxic assets.

And more bad news about the housing market left some traders nervous about hanging onto stocks snapped up a day earlier. The National Association of Realtors said sales of existing homes fell 5.3 percent to an annual rate of 4.49 million last month -- the worst showing since July 1997. Wall Street had expected sales would rise.

According to preliminary calculations, the Dow ended down 80.05, or 1.09 percent, to 7,270.89. The index tumbled by as many as 194 points in early trading, rebounded to trade 54 points above Tuesday's close, and then retreated again.

Broader stock indicators also recovered from earlier lows but finished down. The Standard & Poor's 500 index fell 8.24, or 1.07 percent, to 764.90, and the Nasdaq composite index fell 16.40, or 1.14 percent, to 1,425.43.

The Russell 2000 index of smaller companies fell 11.04, or 2.68 percent, to 401.44.

Declining issues narrowly outnumbered advancers on the New York Stock Exchange, where volume came to 1.22 billion shares.

The S&P 500 index's ability to hold above its November lows despite the market's severe volatility this week shows the potential for a stock recovery, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research. "We really just need more clarity."

On the whole, investors were neither disappointed nor galvanized by Obama's Tuesday night speech that touched on the need to create jobs and stabilize the credit system. He told a joint session of Congress that specifics on these and other goals would follow but that billions more may be needed to stabilize the banking system.

Until it is apparent how potential ownership structure of major U.S. banks will look after the government completes stress tests and determines specific plans to help the struggling sector, investors are likely to remain wary about buying financial shares, said Brett D'Arcy, chief investment officer, CBIZ Financial Solutions.

A handful of bank shares rebounded in afternoon trading, including those Bank of America Corp. -- a company that has gotten a double-dose of government funding, and that investors fear might need more. Bank of America rose 53 cents, or 11 percent, to $5.26, after the CEO made optimistic remarks about the company's stability in a television interview.

Other sectors are being dragged down unfairly by the gloom surrounding the market, such as health care and technology, D'Arcy said. Eventually, he said, these sectors will begin to rebound as investors recognize the value in them -- but it's uncertain when that might occur.

Among tech stocks, IBM Corp. fell 50 cents to $85.90. Microsoft Corp. shed 21 cents to $16.96, and Yahoo Inc. fell 27 cents, or 2 percent, to $12.48.

Government bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.94 percent from 2.80 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.30 percent from 0.29 percent.

The dollar rose against other major currencies, and gold prices fell.

Light, sweet crude rose $2.54 to settle at $42.50 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 0.85 percent, Germany's DAX index fell 1.27 percent, and France's CAC-40 fell 0.41 percent. Earlier, Japan's Nikkei stock average rose 2.65 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

This time, health care stocks bore the brunt of investors' wrath.

Health insurers and drug companies, some of the better performers on Wall Street lately, led the market lower Thursday after the White House proposed cutting payments to private insurance plans.

The Obama administration's $3.55 trillion budget plan for 2010 includes cuts to Medicare and Medicaid. Private insurance plans serving Medicare seniors would take the biggest hit, but hospitals, drug manufacturers and home health agencies also face cuts.

The NYSE DOW closed LOWER -88.81 points -1.22% on Thursday February 26
Sym Last........ ........Change..........
Dow 7,182.08 -88.81 -1.22%
Nasdaq 1,391.47 -33.96 -2.38%
S&P 500 752.83 -12.07 -1.58%
30-yr Bond 3.6460% +0.0450

NYSE Volume 7,683,647,000
Nasdaq Volume 2,385,762,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,915.64 +66.66 +1.73%
DAX 3,942.62 +96.41 +2.51%
CAC 40 2,744.84 +47.92 +1.78%

http://finance.yahoo.com/news/Weak-health-care-stocks-drag-apf-14486543.html

Weak health care stocks drag market lower

Stocks slide as White House proposal to tighten health care spending weighs on insurers

* Tim Paradis, AP Business Writer
* Thursday February 26, 2009, 5:45 pm EST


NEW YORK (AP) -- This time, health care stocks bore the brunt of investors' wrath.

Health insurers and drug companies, some of the better performers on Wall Street lately, led the market lower Thursday after the White House proposed cutting payments to private insurance plans.

The Obama administration's $3.55 trillion budget plan for 2010 includes cuts to Medicare and Medicaid. Private insurance plans serving Medicare seniors would take the biggest hit, but hospitals, drug manufacturers and home health agencies also face cuts.

As investors became aware of the impact that the budget, if enacted, could have on the companies, they turned against what had been one of the strongest industries in the stock market recently. Market watchers had been looking to health care to help lead the market's recovery along with other recession-resistant industries like consumer staples.

Banking shares initially pulled much of the market higher as investors welcomed plans from Washington for additional bailout measures that could provide up to $750 billion in support to the struggling banking system. But the Obama administration said the money was for a contingency fund and that it didn't plan to immediately ask Congress to add to the government's existing $700 billion rescue program. Many financial stocks managed to close the day higher.

The day's gyrations showed how fractious the market is, with investors ready to turn on stocks at the first whiff of bad news. Wall Street also extended a back-and-forth pattern that began earlier in the week. Market watchers say the sudden shifts reflect indecision among investors rather than big changes in their sentiment over the economy.

"I don't think anybody is comfortable if you're in the market right now. You still have quite a bit of fear driving equity prices," said Bill Knapp, investment strategist for MainStay Investments, a division of New York Life Investment Management.

The major stock indexes gave up early leads to close lower.

The Dow Jones industrial average fell 88.81, or 1.2 percent, to 7,182.08, pulled down by stocks including drug maker Merck & Co., down $1.87, or 6.7 percent, at $26.04 and health products company Johnson & Johnson, off $1.52, or 2.8 percent, at $52.44.

The Standard & Poor's 500 index fell 12.07, or 1.6 percent, to 752.83 and the Nasdaq composite index fell 33.96, or 2.4 percent, to 1,391.47.

The Russell 2000 index of smaller companies fell 8.49, or 2.1 percent, to 392.95.

Declining issues outnumbered advancers by about 8 to 7 on the New York Stock Exchange, where consolidated volume came to 6.48 billion shares, down from Wednesday's 7.29 billion.

The early pop in hard-hit financial stocks was typical of the reaction of those shares in recent weeks after other financial rescue plans were announced, said Rob Lutts, chief investment officer at Cabot Money Management Inc. in Salem, Mass.

"You get a little bit of a positive reaction and then people look at the reality of it and say 'Wait a minute this doesn't really change anything right away,'" he said.

Financial shares also got a lift after banks in Europe announced plans to reshape operations.

The Royal Bank of Scotland announced a massive restructuring plan to jettison many of its businesses. The stock jumped $1.24, or 18.8 percent, to $7.83 in New York trading. And troubled Swiss bank UBS replaced its chief executive. UBS rose 88 cents, or 10 percent, to $9.64.

Investors watched for news from Citigroup Inc. The company's effort to boost its equity capital could result in the federal government raising its stake in the bank this week to as much as 40 percent, a person familiar with the talks said.

The company received $45 billion in U.S. bailout money made up primarily of debt-like preferred shares, plus federal guarantees to cover losses on some $300 billion in risky investments. The bank has been in talks with regulators over ways the government could help strengthen the bank still further.

While a deal wasn't announced during the session Thursday, it could be come within days, the person told The Associated Press late Wednesday, asking not to be named because the discussions are still continuing.

Among health insurers, WellPoint Inc. fell $3.78, or 9.7 percent, to $35.34, while UnitedHealth Group Inc. fell $2.96, or 12.9 percent, to $20.07. Aetna Inc. fell $3.05, or 11.3 percent, to $24.03.

In other news, General Motors Corp. reported a $9.6 billion loss for the fourth quarter and said it burned through $6.2 billion of cash in the final three months of 2008. Top GM executives were in Washington, D.C., Thursday to meet with the Obama administration's auto task force to talk about restructuring and additional loans. GM fell 17 cents, or 6.7 percent, to $2.38.

Bond prices were mixed Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3 percent from 2.93 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, fell to 0.26 percent from 0.29 percent Wednesday.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude rose $2.72 to settle at $45.22 on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 1.73 percent, Germany's DAX index rose 2.51 percent, and France's CAC-40 rose 1.78 percent. Earlier, Japan's Nikkei stock average slipped 0.04 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street ended another unforgiving month with a steep loss as Citigroup Inc. and General Electric Co. both unsettled investors.

Citigroup plans to turn over a big piece of itself to the government, a move that fanned worries that other banks would face crippling trouble with bad debt. And GE slashed its quarterly dividend by 68 percent. Both companies are part of the Dow Jones industrial average.

Stocks closed off their lows of the day, but still had big losses as the market had its sixth straight losing month. The Dow and the Standard & Poor's 500 index each shed more than 10 percent in February.

The NYSE DOW closed LOWER -119.15 points -1.66% on Friday February 27
Sym Last........ ........Change..........
Dow 7,062.93 -119.15 -1.66%
Nasdaq 1,377.84 -13.63 -0.98%
S&P 500 735.09 -17.74 -2.36%
30-yr Bond 3.7220% +0.0760

NYSE Volume 9,864,039,000
Nasdaq Volume 2,508,051,750


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,830.09 -85.55 -2.18%
DAX 3,843.74 -98.88 -2.51%
CAC 40 2,702.48 -42.36 -1.54%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,568.42 +110.49 +1.48%
Hang Seng 12,811.57 -83.37 -0.65%
Straits Times 1,594.87 -22.57 -1.40%

http://finance.yahoo.com/news/Wall-Street-slides-after-apf-14498985.html
Wall Street slides after Citigroup-government deal

Stocks slide as investors fret over fallout from Citigroup-government deal; GE cuts dividend

* Tim Paradis, AP Business Writer
* Friday February 27, 2009, 4:31 pm EST

NEW YORK (AP) -- Wall Street ended another unforgiving month with a steep loss as Citigroup Inc. and General Electric Co. both unsettled investors.

Citigroup plans to turn over a big piece of itself to the government, a move that fanned worries that other banks would face crippling trouble with bad debt. And GE slashed its quarterly dividend by 68 percent. Both companies are part of the Dow Jones industrial average.

Stocks closed off their lows of the day, but still had big losses as the market had its sixth straight losing month. The Dow and the Standard & Poor's 500 index each shed more than 10 percent in February.

Citigroup said before the opening bell that it had agreed to a deal in which the U.S. government and private investors including the government of Singapore and Saudi Arabian Prince Alwaleed Bin Talal will convert their preferred stock in the struggling bank to common shares. The plan won't require additional money from the U.S. government, which holds an 8 percent stake in Citigroup and would own 36 percent.

GE said late in the session it would cut its dividend to $9 billion a year. The conglomerate has a big financing arm, so it often trades like a bank stock.

Both moves made the stocks less attractive to investors and they pulled finanicals and the rest of the market lower.

According to preliminary calculations, the Dow fell 119.15, or 1.7 percent, to 7,062.93. The blue chips fell as much as 149 points to near the 7,000 mark, a level they haven't moved below since October 1997.

Broader stock indicators also dropped. The S&P 500 index fell 17.74, or 2.4 percent, to 735.09. The index breached its Nov. 21 trading low of 741.02, which came during the height of the credit crisis. Investors had hoped the November low would mark the bottom of the market's fall from October 2007.

The Nasdaq composite index fell 13.63, or 1 percent, to 1,377.84.

The major indexes haven't had a winning month since August.

The Russell 2000 index of smaller companies fell 3.93, or 1 percent, to 389.02.

Two stocks fell for every one that advanced on the New York Stock Exchange. Volume came to a heavy 2.25 billion shares.

 

[bigdog]

http://finance.yahoo.com/news/Wall-Street-heads-for-another-apf-14508137.html

We will find out what happens tomorrow morning!!!!!!!!!

Wall Street heads for another big drop

Dow set to break below 7,000 as AIG gets more gov't funding, posts $61.7B loss

* Madlen Read, AP Business Writer
* Monday March 2, 2009, 6:57 am EST

NEW YORK (AP) -- Wall Street headed for another big drop Monday, one that could hurl the Dow Jones industrials below 7,000, after American International Group Inc. posted a $61.7 billion quarterly loss.

The government said it would give AIG another $30 billion in loans, in addition to the $150 billion it has already given the ailing insurer.

Concerns about the struggling financial sector and the weakening economy have sent stocks to their lowest levels in 12 years. The Dow Jones industrial average has dropped for six consecutive months, and is worth less than half of its October 2007 record high of 14,164.53.

Billionaire Warren Buffett, in his highly anticipated annual letter to investors Saturday, said his insurance and investment company, Berkshire Hathaway Inc., had its worst year ever in 2008. The grim news came a day after the government said gross domestic product for the fourth quarter shrank at an annual rate of 6.2 percent.

Buffett said he is sure "the economy will be in shambles throughout 2009 -- and, for that matter, probably well beyond -- but that conclusion does not tell us whether the stock market will rise or fall."

Ahead of the market's open, Dow futures tumbled 152, or 2.16 percent, to 6,900. Standard & Poor's 500 index futures sank 14.60, or 1.99 percent, to 719.60, while Nasdaq 100 index futures lost 21.25, or 1.90 percent, to 1,095.75.

Later Monday morning, the Commerce Department will release its January personal income and spending report and its January construction spending report.

The Institute for Supply Management will also releases its manufacturing index for February.

Bond prices rose early Monday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.96 percent from 3.02 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, was little changed at 0.26 percent.

The dollar was mostly higher against other major currencies, while gold prices fell.

Light, sweet crude fell $4.18 to $42.58 in electronic premarket trading on the New York Mercantile Exchange.

In Asian trading, Japan's Nikkei stock average dropped 3.81 percent and Hong Kong's Hang Seng index fell 3.81 percent. In late morning trading in Europe, Britain's FTSE 100 fell 3.96 percent, Germany's DAX index fell 2.74 percent, and France's CAC-40 fell 3.31 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors' despair about financial companies and the recession has brought the Dow Jones industrial average to another unwanted milestone: its first drop below 7,000 in more than 11 years. The market's slide Monday, which took the Dow down 300 points, was nowhere near the largest it has seen since last fall, but the tumble below 7,000 was nonetheless painful.

The credit crisis and recession have slashed more than half the average's value since it hit a record high over 14,000 in October 2007. And now many investors fear the market could take a long time to regain the lost 7,000.

"As bad as things are, they can still get worse, and get a lot worse," said Bill Strazzullo, chief market strategist for Bell Curve Trading. Strazzullo said he believes there's a significant chance the S&P 500 and the Dow will fall back to their 1995 levels of 500 and 5,000, respectively.

The NYSE DOW closed LOWER -299.64 points -4.24% on Monday March 2
Sym Last........ ........Change..........
Dow 6,763.29 -299.64 -4.24%
Nasdaq 1,322.85 -54.99 -3.99%
S&P 500 700.82 -34.27 -4.66%
30-yr Bond 3.6490% -0.0730

NYSE Volume 8,902,261,000
Nasdaq Volume 2,369,507,000


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,625.83 -204.26 -5.33%
DAX 3,710.07 -133.67 -3.48%
CAC 40 2,581.46 -121.02 -4.48%


Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,280.15 -288.27 -3.81%
Hang Seng 12,321.04 -490.53 -3.83%
Straits Times 1,543.78 -51.09 -3.20%

http://finance.yahoo.com/news/Dow-drops-below-7000-for-apf-14518833.html
Dow drops below 7,000 for first time since 1997

Dow breaks 7,000 for first time since '97 as AIG gets more gov't funding, posts $61.7B loss

* Tim Paradis, AP Business Writer
* Monday March 2, 2009, 5:30 pm EST

NEW YORK (AP) -- Investors' despair about financial companies and the recession has brought the Dow Jones industrial average to another unwanted milestone: its first drop below 7,000 in more than 11 years. The market's slide Monday, which took the Dow down 300 points, was nowhere near the largest it has seen since last fall, but the tumble below 7,000 was nonetheless painful.

The credit crisis and recession have slashed more than half the average's value since it hit a record high over 14,000 in October 2007. And now many investors fear the market could take a long time to regain the lost 7,000.

"As bad as things are, they can still get worse, and get a lot worse," said Bill Strazzullo, chief market strategist for Bell Curve Trading. Strazzullo said he believes there's a significant chance the S&P 500 and the Dow will fall back to their 1995 levels of 500 and 5,000, respectively.

The "game-changer," he said, will be the housing market and whether it can stabilize.

A recovery will also require signs of health among financial companies, but so far in 2009, it is clear that banks and insurance companies' losses are multiplying despite hundreds of billions of dollars in government help. The market fell Monday after insurer American International Group Inc. posted a staggering $61.7 billion in quarterly losses and as the government agreed to inject more money into the company. AIG will get another $30 billion in loans, on top of the $150 billion the government has already invested.

And it's not just U.S. companies that have Wall Street frightened. HSBC PLC, Europe's largest bank by market value, said Monday it needs to raise $17.7 billion. The company reported a 70 percent drop in 2008 earnings and said it would cut 6,100 jobs.

While the root of financial firms' problems lie with the bad bets they made on mortgages and mortgage-backed securities, now the recession is exacerbating their problems as it also forces millions of job cuts.

"The economy definitely has deteriorated since November," said Sean Simko, head of fixed income management at SEI Investments. "It's just the fact that we haven't seen signs of improving or stabilizing, per se, which is adding to the morass of the market."

According to preliminary calculations, the Dow fell 299.64, or 4.24 percent, to 6,763.29. The Dow last closed below 7,000 on May 1, 1997 and hadn't finished at this level since April 25, 1997.

The Dow's descent has been swift. It took only 14 sessions for the average to go from above 8,000 to below 7,000. So far this year, the Dow is down 22.9 percent.

Broader stock indicators also slid. The Standard & Poor's 500 index fell 34.27, or 4.7 percent, to 700.82. The index briefly traded below the 700 mark in the final minutes of the session. S&P 500 index hadn't traded below 700 since Oct. 29, 1996. It hasn't closed below that level since the previous day, Oct. 28.

The Nasdaq composite index fell 54.99, or 4 percent, to 1,322.85.

The Russell 2000 index of smaller companies fell 21.22, or 5.5 percent, to 367.80.

The Dow Jones Wilshire 5000 index, which reflects nearly all stocks traded in America, is down 55 percent since its peak in October 2007. That's a paper loss of $10.9 trillion.

About 16 stocks fell for every one that rose on the New York Stock Exchange, where volume came to a heavy 1.80 billion shares.

Bond prices jumped as stocks fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, tumbled to 2.88 percent from 3.02 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.24 percent from 0.25 percent Friday.

Oil prices fell more than 10 percent to $40.15 a barrel Monday as investors worried that a weak economy will hurt demand.

The economic data have been mostly grim, adding momentum to the market's slide. Even when the readings show some room for optimism many investors have been quick to write them off as aberrations. On Monday, the government said personal spending incomes rose more than expected in January but that construction spending fell twice as much as forecast. A trade group said manufacturing contracted in February for the 13th straight month, but at a slower pace than expected.

More, and possibly unnerving, economic data are expected later in the week, including the government's report on unemployment and job losses during February.

"I don't think we find a bottom in the market until we see some sort of increased level of optimism and confidence among consumers and investors," said Jim Baird, chief investment strategist at Plante Moran Financial Advisors.

One measure of unease in the market has been rising after coming down from the fall. The Chicago Board Options Exchange Volatility Index, or the VIX, is just below 53. Ordinarily what's known as Wall Street's fear gauge might be in the 20s and 30s but it had near 90 in October.

Dan Deming, a trader with Strutland Equities, said the VIX indicates investors expect more volatility. He said more investors are resigning themselves to the fact that stocks will continue to push lower.

"The expectation is we're going to go lower," he said.

Market historians would be quick to note, however, that market bottoms often come just as most investors are prepared to give up in disgust or fear.

For investors, that will take several months of economic and corporate reports that point to signs of a turnaround in housing and job losses and signs that the economy is at least leveling off. Analysts are looking for indications that businesses and consumers are starting to boost spending after months of cutting back.

But the economic readings, and the news coming out of financial companies, are still so alarming that investors feel no alternative but to sell.

"I don't think we find a bottom in the market until we see some sort of increased level of optimism and confidence among consumers and investors," said Baird.

And even when the market finally reaches a bottom, it faces a long, long recovery.

"We do feel that things can improve but it is going to be years before we get back to levels we saw in the markets a year ago," said David Chalupnik, head of equities at First American Funds.

Last week, the Dow and the S&P 500 index fell below their Nov. 20-21 lows, reached at the height of the credit crisis. Many traders had hoped would mark the market's low. The Nasdaq remains 2 percent above its Nov. 21 low.

Even big name investors are cautious. Billionaire investor Warren Buffett wrote in his annual letter to investors Saturday he is sure "the economy will be in shambles throughout 2009 -- and, for that matter, probably well beyond -- but that conclusion does not tell us whether the stock market will rise or fall."

Many market analysts look to Wall Street's performance in past bear periods to try to determine when stocks will hit bottom. In the last 60 years, the S&P 500 index bottomed about five months before a recession ended and nine months before corporate profits reached their low or unemployment hit its peak.

The market could recover before the economy starts picking up steam but investors will need some sense that the worst is over -- and that was hard to come by Monday.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors bruised by Wall Street's latest rout found little reason to pile back into the market.

Stocks extended their losses in an erratic session Tuesday as investors wrestled with the reality that the economy is still far from a recovery. The pessimism that has dominated the markets for months stifled some tentative bargain hunting and in the process unraveled several attempts at a rally.

The selling pushed the Standard & Poor's 500 index to its first close below 700 since Oct. 28, 1996. But the losses were modest compared with Monday, when the Dow Jones industrial average tumbled 300 points and both the Dow and the S&P 500 index registered their lowest finishes in more than a decade.

The NYSE DOW closed LOWER -37.27 points -0.55% on Tuedday March 3
Sym Last........ ........Change..........
Dow 6,726.02 -37.27 -0.55%
Nasdaq 1,321.01 -1.84 -0.14%
S&P 500 696.33 -4.49 -0.64%
30-yr Bond 3.6760% +0.0270

NYSE Volume 8,561,144,000
Nasdaq Volume 2,447,019,000


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,512.09 -113.74 -3.14%0
DAX 3,690.72 -19.35 -0.52%
CAC 40 2,554.55 -26.91 -1.04%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,229.72 -50.43 -0.69%
Hang Seng 12,033.88 -283.58 -2.30%
Straits Times 1,524.22 -9.18 -0.60%

http://finance.yahoo.com/news/Wall-Street-fluctuates-a-day-apf-14529116.html

Wall Street shows modest losses a day after tumble

Stocks end mostly lower after sell-off; Bernanke says recovery depends on propping up markets

* Tim Paradis, AP Business Writer
* Tuesday March 3, 2009, 4:55 pm EST

NEW YORK (AP) -- Investors bruised by Wall Street's latest rout found little reason to pile back into the market.

Stocks extended their losses in an erratic session Tuesday as investors wrestled with the reality that the economy is still far from a recovery. The pessimism that has dominated the markets for months stifled some tentative bargain hunting and in the process unraveled several attempts at a rally.

The selling pushed the Standard & Poor's 500 index to its first close below 700 since Oct. 28, 1996. But the losses were modest compared with Monday, when the Dow Jones industrial average tumbled 300 points and both the Dow and the S&P 500 index registered their lowest finishes in more than a decade.

Tuesday's fluctuations came as Federal Reserve Chairman Ben Bernanke told Congress an economic recovery depends on the government's ability to stabilize weak financial markets. He said the efforts were needed to avoid "a prolonged episode of economic stagnation."

Investors are still worried the government won't succeed. On Monday, the government injected $30 billion to troubled insurer American International Group Inc., its fourth attempt to stabilize the company since September.

Bernanke's remarks came as the central bank announced it would begin lending up to $200 billion in an initial move to spur consumer and small business borrowing for autos, education, credit cards and other expenses. The Fed first announced the plan late last year.

That offered some support to the market and helped curb selling, traders said.

"I think people are just finally happy to see that it's here and that it's going to begin," said Joe Saluzzi, co-head of equity trading at Themis Trading LLC. "Normally Wall Street will buy the rumor and sell on the news but I think this is kind of the opposite effect."

According to preliminary calculations, the Dow fell 37.27, or 0.6 percent, to 6,726.02. The index is now down more than 52 percent from its record of 14,164.53 set in October 2007.

Broader stock indicators also fell. The S&P 500 index slid 4.49, or 0.6 percent, to 696.33.

The Nasdaq composite index fell 1.84, or 0.1 percent, to 1,321.01.

The Russell 2000 index of smaller companies fell 6.79, or 1.9 percent, to 361.01.

Two stocks fell for every one that rose on the New York Stock Exchange, where volume came to a moderate 1.9 billion shares.

Saluzzi said a rise prices of commodities like oil led to some speculation that global demand for raw materials could soon increase.

Light, sweet crude rose $1.50 to settle at $41.65 a barrel on the New York Mercantile Exchange. May copper futures rose 8.85 cents to $1.6045 a pound, the highest close since Feb. 9.

Investors showed little reaction to testimony from Treasury Secretary Timothy Geithner, who told the House Ways and Means Committee the added spending in the Obama administration's budget is necessary because the previous administration was unwilling to make long-term investments in health care, energy and education.

President Barack Obama on Tuesday likened the stock market to the daily tracking polls used during campaigns. He said tracking Wall Street's "fits and starts" too closely could lead to bad long-term policy.

Many investors remain fearful of buying into a market that has dashed investors' hopes that it had hit bottom. Last week, the Dow and the S&P 500 index fell through their November lows and, with their continuing pullback, are touching off fears that a new torrent of selling would take place.

Brian Reynolds, chief market strategist at New York-based WJB Capital Group, said the stock market's slide means it could be ripe for a bounce but that a lasting recovery won't come until credit market investors begin to put money into riskier debt that is now out of favor. Investors have been buying the safest types of debt, like government bonds, in favor of mortgage and credit card debt and some corporate debt.

"It's just another continuation of what we've seen for the last year and a half. If you compare the valuation in stocks to the valuation in credit, there is a huge disparity there," Reynolds said.

He contends the S&P 500 index, which is down 22.9 percent in 2009, will continue to fall until it hits the 600 level. That would be a loss of another 13.8 percent.

Investors are also beginning to look toward the Labor Department's February employment report, which is set for Friday. The monthly employment figures are one of the most important economic barometers because rising unemployment cuts into how much consumers spend. Consumer spending accounts for more than two-thirds of U.S. economic activity.

Government bonds were mixed Tuesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.89 percent from 2.87 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.26 percent from 0.27 percent from Monday.

The dollar was mostly lower against other major currencies, while gold prices fell.

Overseas, Britain's FTSE 100 fell 3.14 percent, Germany's DAX index rose 0.52 percent, and France's CAC-40 fell 1.04 percent. Japan's Nikkei stock average slipped 0.69 percent.

 

[bigdog]

DOW could be much better in the morning


Europe --- midday UK time
Symbol... Last...... .....Change.......
FTSE 100 3,570.19 +58.10 +1.65%
DAX 3,782.85 +92.13 +2.50%
CAC 40 2,604.66 +50.11 +1.96%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,290.96 +61.24 +0.85%
Hang Seng 12,331.15 +297.27 +2.47%
Straits Times 1,544.34 +15.83 +1.04%


http://finance.yahoo.com/news/World-stocks-rebound-on-China-apf-14537578.html

World stocks rebound on China stimulus hopes

World stock markets rebound on Chinese stimulus hopes, Shanghai leads recovery

* Pan Pylas, AP Business Writer
* Wednesday March 4, 2009, 6:43 am EST

LONDON (AP) -- Stock markets in Europe and Asia rebounded Wednesday amid mounting hopes that China will soon announce a big stimulus package that could help limit the length and depth of the recession in the industrialized world.

A legislative meeting starts Thursday in China and top of the agenda is what the government can do to lift growth rates, which have fallen in the wake of the global economic downturn. As one of the few major economies still expanding, China is being closely watched amid hopes its demand and trade can help the world weather the most severe global slowdown in decades.

Chinese shares led Wednesday's advance, with Shanghai's index jumping more than 6 percent to close at 2,198.11.

"Obviously, this unusual rally suggests that investors are overly optimistic about what to expect from the legislature. They think the government will do more to boost spending to stimulate the economy," said Peng Yunliang, an analyst with Shanghai Securities in Shanghai.

Elsewhere in Asia, Japan's Nikkei 225 stock average was up 61.24 points, or 0.9 percent, to 7,290.96, while Hong Kong's Hang Seng added 297.27, or 2.5 percent, to 12,331.15. South Korea's Kospi climbed 3.3 percent to 1,059.26.

Markets in Singapore, Taiwan and New Zealand also gained. Australia's index shed 1.6 percent.

In Europe, the FTSE 100 index of leading British shares recovered from six-year lows to rise 66.42 points, or 1.9 percent, to 3,578.51, while Germany's DAX was up 99.38 points, or 2.7 percent, at 3,790.10. The CAC-40 in France was 54.05 points, or 2.1 percent, higher at 2,608.60.

U.S. futures pointed to a higher open for Wall Street on Wednesday. Dow futures rose 119, or 1.8 percent, to 6,788 and the broader Standard & Poor's 500 futures gained 14.3, or 2.1 percent, to 704. After a choppy session, the Dow closed Tuesday at 6,726.02, its lowest close since April 1997, while the S&P closed at 696.33, 52 percent below its peak of October 2007.

Despite Wednesday's rebound around the world, the markets remain in a jittery mood ahead of Thursday's interest rate decisions from the European Central Bank and the Bank of England and Friday's closely-watched U.S. jobs report for February.

"The mood in equity markets is still bleak but we need to be aware that sentiment-emotion is looking rather extreme, not that fundamentals look in any way supportive," said Neil Mackinnon, chief economist at ECU Group.

Sentiment around the world was ravaged this week with the news that American International Group Inc. posted the biggest quarterly loss in corporate history, and HSBC Holdings PLC slashed its dividend and revealed it needed to raise nearly $18 billion from shareholders. And the warning from Ben Bernanke, the U.S. Federal Reserve chairman, that U.S. banks may need more government cash injections to stay afloat did not help matters either.

Oil prices rose, with benchmark crude for April delivery up $1.62 to $43.27 a barrel on the New York Mercantile Exchange. The contract added $1.50 to settle at $41.65 overnight.

In currencies, the dollar fell rose 1.4 percent to 99.35 yen while the euro fell 0.4 percent to $1.2504.

AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The DOW would have been much better except for the last 30 minutes!!!

Buyers who rushed out of stocks for five straight sessions rushed back in Wednesday on hopes that government medicine will help the world's largest economies halt their slide.

Stocks rallied on word of a possible economic stimulus package in China and an Obama administration plan to help struggling U.S. homeowners. A slightly better-than-expected report on the services sector also helped. All the major indexes jumped more than 2 percent.

The advance followed five straight sessions of unrelenting selling that left major indexes at levels not seen in more than a decade.

The NYSE DOW closed LOWER -37.27 points -0.55% on Wednesday March 4
Sym Last........ ........Change..........
Dow 6,875.84 +149.82 +2.23%
Nasdaq 1,353.74 +32.73 +2.48%
S&P 500 712.87 +16.54 +2.38%
30-yr Bond 3.6980% +0.0220

NYSE Volume 8,811,623,000
Nasdaq Volume 2,357,338,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,645.87 +133.78 +3.81%
DAX 3,890.94 +200.22 +5.42%
CAC 40 2,675.68 +121.13 +4.74%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,290.96 +61.24 +0.85%
Hang Seng 12,331.15 +297.27 +2.47%
Straits Times 1,542.41 +13.90 +0.91%

http://finance.yahoo.com/news/Stocks-jump-after-5-days-of-apf-14545979.html

Stocks jump after 5 days of heavy selling

Investors return to market after 5 days of selling on Chinese stimulus, plan for homeowners

* Sara Lepro, AP Business Writer
* Wednesday March 4, 2009, 4:46 pm EST

NEW YORK (AP) -- Buyers who rushed out of stocks for five straight sessions rushed back in Wednesday on hopes that government medicine will help the world's largest economies halt their slide.

Stocks rallied on word of a possible economic stimulus package in China and an Obama administration plan to help struggling U.S. homeowners. A slightly better-than-expected report on the services sector also helped. All the major indexes jumped more than 2 percent.

The advance followed five straight sessions of unrelenting selling that left major indexes at levels not seen in more than a decade.

"Virtually everyone was expecting some sort of a bounce, we just didn't know exactly when that would occur," said Randy Frederick, director of trading and derivatives at Charles Schwab. "You can't go down forever."

Wall Street followed the lead of overseas markets, which rallied on optimism over a possible Chinese economic stimulus plan. Prices for oil and other commodities also climbed as traders bet that government spending could boost demand.

Investors were encouraged by details of a government program designed to help as many as 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.

The Institute for Supply Management, a trade group of purchasing executives, said its services index fell to 41.6 last month from 42.9 in January, slightly above Wall Street's estimate of 41. Any reading above 50 signals growth.

According to preliminary calculations, the Dow Jones industrial average rose 149.82, or 2.2 percent, to 6,875.84. The Standard & Poor's 500 index added 16.54, or 2.4 percent, to 712.87, while the Nasdaq composite index gained 32.73, or 2.5 percent, to 1,353.74.

The Russell 2000 index of smaller companies rose 10.29, or 2.9 percent, to 371.30.

Four stocks rose for every one that fell on the New York Stock Exchange, where volume came to a moderate 1.8 billion shares.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors fled Wall Street again, driven by worries about the nation's big banks and General Motors Corp.

Stocks ended at 12-year lows Thursday, more than wiping out the previous day's rally. Investors wrestled with more disheartening economic data, new concerns about GM and relentless uncertainty about the financial system. Short selling ahead of the government's Friday employment report exacerbated the losses, slashing 281 points from the Dow Jones industrials and sending all the major indexes down more than 4 percent.

Stocks fell in every industry, with beleaguered banks posting some of the steepest drops. Citigroup Inc., still shaky despite receiving billions in government aid, at times sank below $1 and finished down 10 percent at $1.02. General Motors, meanwhile, ended with a loss of 15 percent at $1.86 as it warned of possible bankruptcy.

The NYSE DOW closed LOWER -281.40 points -4.09% on Thursday March 5
Sym Last........ ........Change..........
Dow 6,594.44 -281.40 -4.09%
Nasdaq 1,299.59 -54.15 -4.00%
S&P 500 682.55 -30.32 -4.25%
30-yr Bond 3.5050% -0.1930

NYSE Volume 8,695,992,000
Nasdaq Volume 2,348,808,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,529.86 -116.01 -3.18%
DAX 3,695.49 -195.45 -5.02%
CAC 40 2,569.63 -106.05 -3.96%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,433.49 +142.53 +1.95%
Hang Seng 12,211.24 -119.91 -0.97%
Straits Times 1,518.64 -25.70 -1.66%

http://finance.yahoo.com/news/Stocks-tumble-as-investors-apf-14559588.html

Stocks tumble as investors worry about banks, GM

Stocks plunge anew as brief optimism fades amid lack of positive news; Dow falls 281

* Sara Lepro and Tim Paradis, AP Business Writers
* Thursday March 5, 2009, 5:14 pm EST

NEW YORK (AP) -- Investors fled Wall Street again, driven by worries about the nation's big banks and General Motors Corp.

Stocks ended at 12-year lows Thursday, more than wiping out the previous day's rally. Investors wrestled with more disheartening economic data, new concerns about GM and relentless uncertainty about the financial system. Short selling ahead of the government's Friday employment report exacerbated the losses, slashing 281 points from the Dow Jones industrials and sending all the major indexes down more than 4 percent.

Stocks fell in every industry, with beleaguered banks posting some of the steepest drops. Citigroup Inc., still shaky despite receiving billions in government aid, at times sank below $1 and finished down 10 percent at $1.02. General Motors, meanwhile, ended with a loss of 15 percent at $1.86 as it warned of possible bankruptcy.

"Citigroup going below a buck today was a little scary," said Mark LeStrange, director of sales at Source Trading.

"To say that we're cheap here and it's a good value, it sounds right, but in all reality we could go 50 percent lower," he said. "Nobody has any idea how low we can go."

The Standard & Poor's 500 index is now down 56.4 percent from its peak in October 2007, making it the second worst slide for the index since its fall of 86.2 percent from 1929-32.

The latest torrent of selling came ahead of the February Labor Department report that is likely to show hundreds of thousands of jobs were lost. Even some positive news, including some better-than-expected retail sales and factory orders, was not enough to stoke investor confidence.

The reports failed to show a significant improvement and so the market gave back a big gain from Wednesday, said Doreen Mogavero, president of brokerage Mogavero, Lee & Co.

"The economic data is still obviously a huge worry," she said.

Short sellers also dragged on the market, analysts said. Short sellers place bets that a stock will fall, and risng short positions on a stock can intensify its decline.

"Just go out kill them. It's the easiest way to go out and make a buck," said Stephen A. Lieber, chief investment officer at Alpine Woods Capital Investors LLC in Purchase, N.Y., referring to short sellers.

The Dow fell 281.40, or 4.1 percent, to 6,594.44, its lowest close since April 1997.

Broader indicators also tumbled. The S&P 500 index dropped 32.95, or 4.6 percent, to 679.92, its lowest close since September 1996. The Nasdaq composite index fell 52.30, or 3.9 percent, to 1,301.44.

The Russell 2000 index of smaller companies fell 21.49, or 5.8 percent, to 349.77.

On the New York Stock Exchange, only 235 stocks advanced while 2,887 fell. Volume came to a heavy 1.89 billion shares.

Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, agreed that short selling is driving the market and that the drubbing is keeping away investors who would be attracted by beaten down stocks.

"Long-term investors would really step in if prices got too low or oversold and begin to do some bargain hunting. But with all the uncertainty that has been created, long-term investors are not stepping in," he said. "What incentive do long-term investors have stepping? Traders rule the roost."

Stocks fell initially after China deflated investors' hope that it would take new steps to stimulate its economy, but the discouraging economic data sent stocks even lower. The hope that China would unveil more government spending to help its economy was a major factor behind the market's bounce Wednesday, which sent the Dow Jones industrials up nearly 150 points after a five-day slide.

"It's been this continuous (cycle of) hope leads to disappointment," said Todd Salamone, senior vice president of research, Schaeffer's Investment Research in Cincinnati.

Since the Dow and the S&P 500 index plowed through their November lows last week, dashing hopes that the market had indeed hit a bottom, investors have been left wondering how much more the market can fall. At the same time, there is a contingent of investors with a "why sell now" mentality who are fearful of missing the next rally, Salamone said.

"A lot of people are banking we can't go much further, but if you look to the '30s, we could indeed go a lot lower," he said, referring to Wall Street's huge losses during the Great Depression..

Discouraged by little evidence that Washington's efforts to stabilize the economy are working, investors have lost faith in the administration, he said.

"At this point, you've got to be asking will anything help?" Salamone said. "The fact could very well be that the government can't do very much."

Among Thursday's gloomy reports, the Commerce Department said orders for manufactured goods fell by 1.9 percent during the first month of the year. While this was better than the 3.5 percent drop economists had expected, it marked a record sixth straight month of declines.

Data showing that initial unemployment claims fell more than anticipated last week failed to buoy stocks. Economists surveyed by Thomson Reuters/IFR predict the Labor Department will report that U.S. employers slashed 648,000 jobs in February -- more than the 598,000 cut in January.

Rising unemployment is of particular concern because it means many consumers have less to spend. And consumer spending, which accounts for more than two-thirds of U.S. economic activity, is crucial to helping the economy turn around. A handful of better-than-expected retail sales reports, including one from Wal-Mart Stores Inc., weren't enough to convince investors that consumer spending is improving.

The future of General Motors also plagued investors. The automaker said in its annual report that auditors raised serious doubt about its ability to continue operating. GM has already received $13.4 billion in federal loans, and is seeking a total of $30 billion from the government. GM dove 349 cents, or 15.5 percent, to $1.86.

Negative comments from Moody's Investors Service weighed on already depressed financial stocks. Concerns about capital levels led the ratings agency to downgrade the ratings of Bank of America Corp. and Wells Fargo & Co. Moody's also lowered the outlook on JPMorgan Chase & Co.'s ratings to negative. Bank of America shares dropped 42 cents, or 11.7 percent, to $3.17; Wells Fargo plunged $1.54, or 15.9 percent, to $8.12; JPMorgan tumbled $2.70, or 14 percent, to $16.60.

Government bond prices rose as investors sought a safe haven. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.82 percent from 2.98 percent late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.18 percent from 0.25 percent Wednesday.

Gold prices advanced, even as the dollar rose against other major currencies.

Light, sweet crude fell $1.77 to settle at $43.61 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 fell 3.2 percent, Germany's DAX index dropped 5 percent, and France's CAC-40 fell 4 percent. Earlier, Japan's Nikkei stock average rose 2 percent after Wall Street's Wednesday rally, but Hong Kong's Hang Seng index fell 1 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Still, the major indexes remain down sharply for the week and near 12-year lows. The Dow Jones industrial average is down 6.2 percent for the week, and the Standard & Poor's 500 index is down 7 percent. Both have fallen more than 24 percent since the start of 2009.

The Nasdaq is down 6.1 percent for the week, and at a six-year low.

Investors have gotten used to bad news, but layoffs topping 600,000 a month still made for a volatile day on Wall Street.

Stocks soared, sank and then clawed their way back to a mixed close Friday after the Labor Department released its February jobs report.

Employers cut 651,000 jobs last month, and the unemployment rate jumped to 8.1 percent. The government also revised its December and January job loss figures up to 681,000 and 655,000, respectively. Many market participants had been bracing for even worse readings.

The NYSE DOW closed HIGHER +32.50 points +0.49% on Friday March 6
Sym Last........ ........Change..........
Dow 6,626.94 +32.50 +0.49%
Nasdaq 1,293.85 -5.74 -0.44%
S&P 500 683.38 +0.83 +0.12%
30-yr Bond 3.5030% -0.0020

NYSE Volume 8,508,441,000
Nasdaq Volume 2,504,320,750


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,530.73 +0.87 +0.02%
DAX 3,666.41 -29.08 -0.79%
CAC 40 2,534.45 -35.18 -1.37%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,173.10 -260.39 -3.50%
Hang Seng 11,921.52 -289.72 -2.37%
Straits Times 1,513.12 -5.52 -0.36%

http://finance.yahoo.com/news/Stocks-end-mixed-after-apf-14571058.html

Stocks end mixed after February jobs data

Stocks finish mixed, recovering from steep losses after February jobs data

* Madlen Read, AP Business Writer
* Friday March 6, 2009, 4:50 pm EST

NEW YORK (AP) -- Investors have gotten used to bad news, but layoffs topping 600,000 a month still made for a volatile day on Wall Street.

Stocks soared, sank and then clawed their way back to a mixed close Friday after the Labor Department released its February jobs report.

Employers cut 651,000 jobs last month, and the unemployment rate jumped to 8.1 percent. The government also revised its December and January job loss figures up to 681,000 and 655,000, respectively. Many market participants had been bracing for even worse readings.

Still, the major indexes remain down sharply for the week and near 12-year lows. The Dow Jones industrial average is down 6.2 percent for the week, and the Standard & Poor's 500 index is down 7 percent. Both have fallen more than 24 percent since the start of 2009.

And many market watchers say there's no reason stocks can't slide further.

"My sense is we haven't discounted all the negatives out there as of yet," said Rob Lutts, president of Cabot Money Management.

Big institutional investors are still largely waiting for positive signs from the economy before making any major commitments. As a result, the market is largely being driven by "short" traders, who sell borrowed stock and then buy it back later in hopes that the price will decline in the meantime. That makes for a choppy, unpredictable market.

"The shorts are having a complete field day in this environment," said Kent Engelke, managing director at Capital Securities Management in Glen Allen, Va. "Right now you have everybody so fearful, and these shorts are controlling the market."

According to preliminary calculations, the Dow rose 32.50, or 0.5 percent, to 6,626.94. The S&P 500 index rose 0.83, or 0.12 percent, to 683.38, while the Nasdaq composite index fell 5.74, or 0.44 percent, to 1,293.85.

The Nasdaq is down 6.1 percent for the week, and at a six-year low.

Three stocks fell for every two that rose on the New York Stock Exchange. Volume came to 1.77 billion shares.

With uncertainty about the economy and financial system keeping the bulk of investors on the sidelines, even small advances have been difficult to maintain.

"When you get this precipitous of a fall, you are always due for some sort of rally, but a rally will be unsustainable," said Jeff Buetow, senior portfolio manager at Portfolio Management Consultants.

And the market, analysts say, needs more clarity about the troubled financial sector before buyers come back into the market with any force. Until then, Engelke said, a sustainable advance is impossible.

"You can't have a healthy economy without a healthy banking system," he said.

Banks continued to slash their dividends in anticipation of more loan losses this year.

Wells Fargo & Co. on Friday cut its dividend to 5 cents a share from 35 cents, following last week's move by JPMorgan Chase & Co. to reduce its dividend to 5 cents as well. Citigroup and Bank of America Corp. had already slashed their quarterly dividends to a penny per share.

Wells Fargo shares rebounded Friday by 18 cents, or 2.2 percent, to $8.30. Citigroup, which fell below $1 a share for the first time Thursday, rebounded by a penny to close at $1.03.

But most other financial stocks slumped. JPMorgan dropped 67 cents, or 4 percent, to $15.93, Bank of America slipped 3 cents to $3.14, Goldman Sachs Group Inc. fell $6.07, or 7.4 percent, to $75.65 and Morgan Stanley fell 80 cents, or 4.5 percent, to $17.18.

GM shares continued their freefall as speculation about the automaker's future swirled. On Friday, members of the Obama administration's auto task force met again with the company's stakeholders.

GM shares dropped 41 cents, or 22 percent, to $1.45.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note rose to 2.88 percent from 2.81 percent late Thursday. The yield on the three-month T-bill fell was flat at 0.20 percent.

Gold prices rose as the dollar traded mixed against other major currencies.

Light, sweet crude rose $1.91 to settle at $45.52 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 0.02 percent, Germany's DAX index fell 0.79 percent, and France's CAC-40 fell 1.37 percent. Earlier, Japan's Nikkei stock average fell 3.50 percent, and Hong Kong's Hang Seng index fell 2.37 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors fixated on the faltering U.S. economy brushed off the type of merger news that normally starts rallies.

Wall Street closed down more than 1 percent Monday as uneasiness about the economy eclipsed a bounce in troubled financial stocks and news of a big drug company merger. Stocks rose in the early going but eventually turned lower in a now familiar pattern where short-lived bursts of optimism give way to concerns about the country's economic woes.

Financial stocks rose on a news report that Bank of America Corp. could raise capital in the private sector. Shares of major banks have been pummeled to multiyear lows amid growing concern that they don't have enough cash to cover future losses despite multiple government rescues.

The NYSE DOW closed LOWER -79.89 -1.21% on Monday March 9
Sym Last........ ........Change..........
Dow 6,547.05 -79.89 -1.21%
Nasdaq 1,268.64 -25.21 -1.95%
S&P 500 676.53 0.00 0.00%
30-yr Bond 3.5930% 0.0000

NYSE Volume 7,410,136,500
Nasdaq Volume 2,085,900,625


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,542.40 +11.67 +0.33%
DAX 3,692.03 +25.62 +0.70%
CAC 40 2,519.29 0.00 0.00%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,086.03 -87.07 -1.21%
Hang Seng 11,344.58 -576.94 -4.84%
Straits Times 1,465.69 -47.43 -3.13%

http://finance.yahoo.com/news/US-stocks-falter-as-investors-apf-14587433.html

US stocks falter as investors battle uncertainty

US stocks falter as investors battle uncertainty; Dow sheds 79.89 points

* Sara Lepro, AP Business Writer
* Monday March 9, 2009, 5:13 pm EDT

NEW YORK (AP) -- Investors fixated on the faltering U.S. economy brushed off the type of merger news that normally starts rallies.

Wall Street closed down more than 1 percent Monday as uneasiness about the economy eclipsed a bounce in troubled financial stocks and news of a big drug company merger. Stocks rose in the early going but eventually turned lower in a now familiar pattern where short-lived bursts of optimism give way to concerns about the country's economic woes.

Financial stocks rose on a news report that Bank of America Corp. could raise capital in the private sector. Shares of major banks have been pummeled to multiyear lows amid growing concern that they don't have enough cash to cover future losses despite multiple government rescues.

"Any bank right now that can raise money in the private sector, that is a major positive for the market," said Quincy Krosby, chief investment strategist at The Hartford. "It's another way to raise capital rather than the government infusing capital into the banks."

But remarks from billionaire investor Warren Buffett added to an overall downbeat mood. He said during an appearance on CNBC that the economy had "fallen off a cliff" over the past six months. He noted that consumers have changed their habits in remarkable ways.

Investors even wrote off rare dealmaking as moves borne more of necessity than opportunity as drugmakers Merck and Schering-Plough announced plans to combine in a $41 billion deal.

"Any type of news we get, the market is just skeptical," said Jon Biele, head of capital markets at Cowen & Co. "There is nothing in the near term that is going to ratchet us to a different higher level."

The Dow Jones industrial average fell 79.89, or 1.2 percent, to 6,547.05.

The Standard & Poor's 500 index fell 6.85, or 1 percent, to 676.53, while the Nasdaq composite index fell 25.21, or 2 percent, to 1,268.64.

The Russell 2000 index of smaller companies fell 7.79, or 2.2 percent, to 343.26.

About five stocks rose for every two that fell on the New York Stock Exchange, where volume came to 1.56 billion shares.

Both the Dow and the S&P 500 have fallen more than 25 percent this year. The Dow is at its lowest level since the spring of 1997, and the S&P 500 is at its lowest point since the fall of 1996.

The Nasdaq, meanwhile, is at a six-year low.

"There is really not very much for the market to sink its teeth into," said Steve Sachs, director of trading at Rockville, Md.-based Rydex Investments.

Investors were unimpressed with Merck & Co.'s offer for Schering-Plough. Merck has offered Schering-Plough shareholders $10.50 in cash and just over half of one Merck share for each of their shares. The price represents a 34 percent premium to Schering-Plough's closing stock price on Friday. A combination between the two companies had long been speculated.

Merck dropped $1.75, or 7.7 percent, to $20.99, while Schering-Plough rose $2.50, or 14.2 percent, to $20.13.

Genentech rose $1.77, or 2 percent, to $92.63 after The Wall Street Journal reported the company is close to striking a deal for a $95-per-share sale to Switzerland's Roche, the company's cancer drug partner. On Friday, Roche increased its bid to $93 per share, or $45.7 billion, after its $86.50-per-share offer failed to gain shareholder support. The companies have been going back and forth since July, when Genentech rejected a $89-per-share bid as too low.

Among financials, Bank of America jumped 61 cents, or 19.4 percent, to $3.75. Wells Fargo & Co. rose $1.36, or 15.8 percent, to $9.97.

General Electric Co. rose after a spokesman for the conglomerate confirmed that its GE Capital lending arm is selling debt under a federal liquidity program. The company, which often trades in line with financial stocks, rose 35 cents, or 5 percent, to $7.41.

Capital One Financial Corp. became the latest bank to slash its dividend, following JPMorgan Chase & Co., Wells Fargo & Co. and others. The lender said it will reduce its payout by 87 percent to 5 cents to help preserve capital. Capital One rose 42 cents, or 5 percent, to $8.73, after falling to $7.80, a new 52-week low.

Investors also awaited news about the nation's automakers. Members of the Obama administration's auto task force are scheduled to meet with General Motors Corp. and Chrysler LLC executives Monday in the Detroit area and tour their facilities.

The government could recall its $17.4 billion in loans to GM and Chrysler if they fail to sign deals for debt restructuring and other concessions from stakeholders by March 31. GM and Chrysler are seeking $21.6 billion in additional aid to execute turnaround plans submitted last month.

GM rose 23 cents, or 15.9 percent, to $1.68. Chrysler isn't publicly traded.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Wall Street has had its best day of the year, storming higher after some good news from Citigroup. Citigroup Inc. says it operated at a profit during the first two months of the year. That energized financial stocks and in turn, the entire stock market. Surprised investors drove the major indexes up more than 5.5 percent to their biggest one-day rally of the year. The Dow Jones industrials shot up nearly 380 points.

However, many analysts are still cautious -- noting that Wall Street has seen many blips higher since the credit crisis and recession began. Word of Citi's performance broke a months-long torrent of bad news from the banking industry but analysts weren't ready to say the stock market was at a turning point and about to barrel higher after a slide that's lasted more than 16 months.

"To have a sustained rally, we have to have a shift in sentiment," said Kurt Karl, chief U.S. economist at Swiss Re. "One day isn't going to make a trend."

The NYSE DOW closed HIGHER +379.44 points +5.80% on Tuesday March 10
Sym Last........ ........Change..........
Dow 6,926.49 +379.44 +5.80%
Nasdaq 1,358.28 +89.64 +7.07%
S&P 500 719.60 +43.07 +6.37%
30-yr Bond 3.7070% +0.1140

NYSE Volume 9,853,104,000
Nasdaq Volume 2,493,146,500

Europe
Symbol... Last...... .....Change.......
FTSE 100 3,715.23 +172.83 +4.88%
DAX 3,886.98 +194.95 +5.28%
CAC 40 2,663.68 +144.39 +5.73%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,054.98 -31.05 -0.44%
Hang Seng 11,694.05 +349.47 +3.08%
Straits Times 1,485.75 +28.80 +1.98%

http://biz.yahoo.com/ap/090310/wall_street.html

Dow ends up nearly 380 on Citigroup profit news
Tuesday March 10, 4:36 pm ET
By Sara Lepro and Tim Paradis, AP Business Writers
Stocks rally after Citi says operating at profit, Bernanke calls for bank reform

NEW YORK (AP) -- Wall Street has had its best day of the year, storming higher after some good news from Citigroup. Citigroup Inc. says it operated at a profit during the first two months of the year. That energized financial stocks and in turn, the entire stock market. Surprised investors drove the major indexes up more than 5.5 percent to their biggest one-day rally of the year. The Dow Jones industrials shot up nearly 380 points.

However, many analysts are still cautious -- noting that Wall Street has seen many blips higher since the credit crisis and recession began. Word of Citi's performance broke a months-long torrent of bad news from the banking industry but analysts weren't ready to say the stock market was at a turning point and about to barrel higher after a slide that's lasted more than 16 months.

"To have a sustained rally, we have to have a shift in sentiment," said Kurt Karl, chief U.S. economist at Swiss Re. "One day isn't going to make a trend."

Still, the Citigroup news offered investors some hope that the first quarter will show signs of improvement.

In a letter to employees Monday, Citi Chief Executive Vikram Pandit said the performance this year has been the bank's best since the third quarter of 2007 -- the last time it booked a profit for a full quarter. Based on historical revenue and expense rates, Citi's projected earnings before taxes and one-time charges would be about $8.3 billion for the full quarter.

Pandit declined to say how large credit losses and other one-time items have been that would at least partially offset profit.

Citi surged 38 percent while Bank of America Corp. jumped 27.7 percent. The stocks are among the 30 that make up the Dow. All the components of the index climbed Tuesday.

Financial stocks have been at the center of the market collapse that has left the major indexes at their lowest point in more than a decade. Reports of losses on bad loans and write-offs on shrinking assets have pounded banking stocks; Citi fell below $1 a share last week. Analysts have been worrying that hundreds of billions of dollars in government bailouts wouldn't be enough to save the big banks.

Investors welcomed Tuesday's rally as overdue after weeks of selling but analysts were quick to warn that it could be little more than a one-day pop. Ben Halliburton, chief investment officer of Tradition Capital Management in Summit, N.J., dismissed the surge as likely little more than a bear market rally that quickly evaporates.

A bear market is defined as a drop of 20 percent from a market peak -- and stocks passed that point last year and continued to plunge, leaving the Dow and Standard & Poor's 500 at less than half the record highs they reached in October 2007. A bear market rally lifts stocks off their lows, but it quickly evaporates.

Wall Street has already seen a few false starts. From late November until the start of this year, the Dow and the S&P 500 jumped about 20 percent before plumbing fresh lows this month. The slide has been punishing but it is still well short of the plunge seen in stocks from 1929-32.

"I would be surprised to see us trade back over 800 in the near term," Halliburton said, referring to the S&P 500. "The news coming out on the economic front will continue to be rather gloomy."

Analysts suggested that the market's gains, especially among financial stocks, could be attributed in part to short covering, an investment strategy that tends to drive rallies in volatile markets. Short-sellers are traders who sell borrowed stock and then buy it back later on the hopes that the price will have fallen. If they believe a stock will be going up, they have to "cover" their positions, or buy shares to repay the loan and limit their losses.

Reports surfaced Tuesday that federal regulators are considering a proposal to reinstate the uptick rule, which backers say helps protect companies from excessive shorting. It was allowed to expire in 2007.

According to preliminary calculations, the Dow jumped 379.44, or 5.8 percent, to 6,926.49. Dow stocks with the biggest gains included General Electric Co., which jumped $1.46, or 19.7 percent, to $8.87. GE has a big financial services division, so it tends to move with banking stocks.

The S&P 500 index rose 43.07, or 6.4 percent, to 719.60, while the Nasdaq composite rose 89.64, or 7.1 percent, to 1,358.28.

The Russell 2000 index of smaller companies rose 24.49, or 7.1 percent, to 367.75.

About 13 stocks rose for every one that fell on the New York Stock Exchange, where volume came to a heavy 2.19 billion shares.

 

[bigdog]

http://biz.yahoo.com/ap/090311/wall_street.html

Overseas, Japan's Nikkei stock average jumped 4.55 percent and Hong Kong's Hang Seng rose 2.02 percent. In late morning trading, Britain's FTSE 100 was up 0.10 percent, Germany's DAX index was up 1.56 percent, and France's CAC-40 was up 1.38 percent.

Wall Street looks to extend big gains
Wednesday March 11, 7:49 am ET
By Sara Lepro, AP Business Writer
Stock futures point higher as Wall Street looks to extend big gains

NEW YORK (AP) -- Wall Street appeared ready Wednesday to extend its big rally into a second day.

Stock index futures pointed sharply higher after markets around the world followed the lead of U.S. investors who bought stocks furiously Tuesday on news that Citigroup Inc. was operating at a profit.

However, analysts were still very cautious, noting that it's common for the stock market to blip up after a prolonged period of selling. They also noted that investors are well aware of the many problems facing the economy.

There is little economic and corporate news expected Wednesday. Investors are likely to keep a close watch on financial stocks, especially as they await details on the government's plan for dealing with banks' toxic assets. Treasury Secretary Timothy Geithner said Tuesday that the Obama administration will unveil the plan within the next couple of weeks.

During an interview on "The Charlie Rose Show," Geithner said the plan the administration has put together will provide financing to private investors who are willing to buy banks' bad assets. He predicted the plan will succeed but will take time to work.

Financial stocks led Tuesday's rally, which saw the Dow Jones industrials surge nearly 380 points. Word of Citigroup's improved performance was a welcome reprieve from the flood of bad news that has slammed bank stocks and the broader market for months. And it provided investors with a boost of optimism that the first quarter might not be as bad as expected.

But Tuesday's rally was also fed by short covering, which occurs when investors need to buy stock to replace shares that were borrowed and then sold on expectations of a market decline.

Ahead of the market's open, Dow Jones industrial average futures rose 68, or 1 percent, to 6,955. Standard & Poor's 500 index futures added 10.40, or 1.5 percent, to 726.40, while Nasdaq 100 index futures rose 13.75, or 1.2 percent, to 1,119.75.

In corporate news Wednesday, Staples Inc. said its fiscal fourth-quarter profit dropped 14 percent amid a number of charges related to an acquisition. However, the office products retailer reported a 16 percent jump in sales. In premarket trading, shares slipped 74 cents to $15.

Financial shares pointed higher ahead of the market's open. Citigroup added 20 cents to $1.65, while Bank of America Corp. added 34 cents to $5.13.

Bond prices were mixed early Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged from late Tuesday at 3 percent. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.23 percent from 0.24 percent late Tuesday.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude fell 65 cents to $45.06 a barrel in electronic premarket trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average jumped 4.55 percent and Hong Kong's Hang Seng rose 2.02 percent. In late morning trading, Britain's FTSE 100 was up 0.10 percent, Germany's DAX index was up 1.56 percent, and France's CAC-40 was up 1.38 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

Investors have been clamoring for months for a bit of good news. On Thursday, they got a load of it.

The Dow Jones industrials shot up 240 points to a two-week high of 7,170, bringing its gains over the past three days to 622 points, or 9.5 percent. It was the index's biggest three-day jump since last November.

Surprisingly positive signals this week from companies across all industries, particularly banks, have made traders think twice about continuing to drive stocks lower. It's too soon to tell whether this week's upturn is the beginning of a bull market or simply a temporary rally within a bear market, but either way there has been a pronounced change in Wall Street's tone.


The NYSE DOW closed HIGHER +239.66 points +3.46% on Thursday March 12
Sym Last........ ........Change..........
Dow 7,170.06 +239.66 +3.46%
Nasdaq 1,426.10 +54.46 +3.97%
S&P 500 750.74 +29.38 +4.07%
30-yr Bond 3.6350% -0.0220

NYSE Volume 8,468,943,000
Nasdaq Volume 2,546,697,000

Europe
Symbol... Last...... .....Change.......
FTSE 100 3,712.06 +18.25 +0.49%
DAX 3,956.22 +42.12 +1.08%
CAC 40 2,694.25 +20.05 +0.75%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,198.25 -177.87 -2.41%
Hang Seng 12,001.53 +70.87 +0.59%
Straits Times 1,493.53 -11.98 -0.80%

http://biz.yahoo.com/ap/090312/wall_street.html
Stocks rally on good news for banks, GM, retailers
Thursday March 12, 6:27 pm ET
By Madlen Read, AP Business Writer
Wall Street rallies after a day of good news; Dow logs biggest 3-day gain since November

NEW YORK (AP) -- Investors have been clamoring for months for a bit of good news. On Thursday, they got a load of it.

The Dow Jones industrials shot up 240 points to a two-week high of 7,170, bringing its gains over the past three days to 622 points, or 9.5 percent. It was the index's biggest three-day jump since last November.

Surprisingly positive signals this week from companies across all industries, particularly banks, have made traders think twice about continuing to drive stocks lower. It's too soon to tell whether this week's upturn is the beginning of a bull market or simply a temporary rally within a bear market, but either way there has been a pronounced change in Wall Street's tone.

"How all this turned around in a week, I don't know," said Scott Bleier, president of CreateCapital Advisors. "But it's certainly a better outlook than how it looked two weeks ago."

The rally got an extra dose of adrenaline Thursday after an accounting board told Congress it may recommend an easing in financial reporting rules of tough-to-sell assets -- a change that banks say would help their bottom lines. Upheaval in the banking industry has been dogging the market since 2007, and hope that banks might finally get relief in how they value their bad assets spurred a flurry of buying on Wall Street.

"We might find that the banks are not as bad, or not bad at all, if these assets are marked differently," said Doreen Mogavero, president of the New York floor brokerage Mogavero, Lee & Co.

Better-than-expected retail sales figures also helped stocks, as did positive news from four Dow companies: Bank of America Corp., General Electric Co., General Motors Corp., and Pfizer Inc.

GE's credit rating was cut by less than expected, GM said it will not need a $2 billion loan it previously requested from the government, and Pfizer reported a successful cancer drug trial. Bank of America's CEO told reporters his bank was profitable in January and February. Citigroup Inc. triggered this week's rally Tuesday with similar remarks.

No one is calling the end to the selling on Wall Street. The economic picture is too uncertain, and much of this week's rally has been driven by technical factors. One of those factors is traders' inclination to buy stock to cover "short" bets, or bets that a stock will fall.

But it's been the most reassuring week in months for the stock market. The Dow Jones Wilshire 5000 index, which reflects nearly all stocks traded in America, has jumped 11.2 percent over the past three sessions. That's a paper gain of $900 billion.

"There's a lot of money on the sidelines, and a lot of people who've been waiting for the turn to come," Mogavero said. "I think that probably, people will want to get some of their money in the market."

The Dow rose 239.66, or 3.5 percent, to 7,170.06. The Standard & Poor's 500 index climbed 29.38, or 4.1 percent, to 750.74. The Nasdaq composite index gained 54.46, or 4 percent, to 1,426.10.

The Russell 2000 index of smaller companies rose 23.82, or 6.5 percent, to 390.12.

After a modest decline Monday and three days of buying, the Dow is up 8.2 percent so far for the week. The S&P 500 index is up 9.9 percent and the Nasdaq is up 10.2 percent. Before this week's rebound, the Dow and S&P had tumbled to their lowest levels since 1997 and 1996, respectively.

Advancing stocks outnumbered decliners by more than 10 to 1 on the New York Stock Exchange Thursday, where consolidated volume came to 7.2 billion shares, up from 7.1 billion shares Wednesday.

Not all of Thursday's data was positive. The Commerce Department said retail sales dipped by a modest 0.1 percent in February, but the Labor Department reported that first time claims for unemployment benefits rose last week to 654,000 from 639,000 the week before, more than analysts had expected.

Investors are also aware that much of this week's rebound can be attributed to covering short positions. Traders have been covering short bets by buying stocks, especially after the Securities and Exchange Commission said it was considering reinstating the "Uptick Rule." The rule, eliminated in 2007, aimed at curbing short-selling by only allowing it when a stock edged higher.

On Thursday investors grew more optimistic about bank stocks after the chairman of the independent Financial Accounting Standards Board told the House Financial Services subcommittee on capital markets that the board "could have the guidance in three weeks" on so-called "mark-to-market" accounting.

Frozen demand in the credit markets has sharply lowered the value of assets having anything to do with real estate or consumer credit -- even though most of the loans themselves are still getting paid off. Those lower asset values have translated into huge losses for banks.

Citigroup rose 8.4 percent, Bank of America rose 19 percent, Wells Fargo & Co. rose 17 percent, and JPMorgan Chase & Co. rose 14 percent.

GM rose 17.2 percent to $2.18 after its chief financial officer said it would not need its federal loan for March.

GE rose nearly 13 percent to $9.57 after Standard & Poor's downgraded the conglomerate by one notch from "AAA" due to troubles in GE's lending arm.

Meanwhile, pharmaceutical stocks soared Thursday on more acquisition news and a positive drug trial at Pfizer Inc.

Pfizer said it ended a successful trial of its cancer drug Sutent early after data showed the drug met its goal of slowing the progression of pancreatic cancer. Shares of Pfizer, a Dow component, rose nearly 10 percent to $14.02.

Switzerland's Roche Holding AG agreed to buy the rest of Genentech Inc. for $46.8 billion, while Gilead Sciences Inc. agreed to buy CV Therapeutics Inc. for $1.4 billion. Earlier this week, drugmakers Merck and Schering-Plough agreed to merge in a $41 billion deal.

Government bond prices rose, driving the yield on the 10-year Treasury note down to 2.86 percent from 2.91 percent late Wednesday. The dollar strengthened against other major currencies, gold prices gained, and crude oil surged $4.70 to $47.03 a barrel on the New York Mercantile Exchange.

Overseas markets were mixed. Britain's FTSE 100 rose 0.5 percent, Germany's DAX index rose 1.1 percent, and France's CAC-40 rose 0.8 percent. Japan's Nikkei stock average dropped 2.4 percent, while Hong Kong's Hang Seng index rose 0.6 percent.

 

[bigdog]

Looking good for Monday!!

Europe
Symbol... Last...... .....Change.......
FTSE 100 3,794.48 +82.42 +2.22% @ 11.00 AM
DAX 4,028.85 +72.63 +1.84% @ midday
CAC 40 2,760.92 +66.67 +2.47% @ midday

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,569.28 +371.03 +5.15%
Hang Seng 12,525.80 +524.27 +4.37%
Straits Times 1,577.52 +83.99 +5.62%


http://biz.yahoo.com/ap/090313/wall_street.html

Wall Street set to extend gains for 4th session
Friday March 13, 7:04 am ET
By Sara Lepro, AP Business Writer
Stock futures point higher as investors look to extend gains for fourth straight session

NEW YORK (AP) -- Stock futures pointed higher early Friday as investors prepared to extend Wall Street's advance into a fourth straight session.

Overseas markets were already setting the tone for the day, rising on hopes for new economic stimulus measures in China and Japan. Chinese Premier Wen Jiabao said the government is ready to roll out even more measures, while Japan's prime minister is calling for a new stimulus package.

Later Friday morning, the Commerce Department will report international trade data for January.

The Dow Jones industrials have rallied 9.5 percent in three days as surprisingly positive reports from companies across a wide range of industries is sparking hopes of an economic turnaround. Most encouraging perhaps is the news from banks that suggests first-quarter results won't be nearly as dire as many analysts have feared.

While the week's gains have been a welcome respite to the unrelenting selling that has plagued investors for weeks and the sentiment on the Street is more upbeat than it has been in months, analysts warn the rally may not last long. Technical factors that have helped drive the market this week are likely to continue Friday, including short covering, when traders buy stock to cover "short" bets, or bets that a stock will fall.

Dow futures rose 51, or 0.7 percent, to 7,167. Standard & Poor's 500 index futures jumped 5.40, or 0.7 percent, to 753.80, while Nasdaq 100 index futures rose 3, or 0.3 percent, to 1,166.

Overseas, Japan's Nikkei stock average jumped 5.15 percent, while Hong Kong's Hang Seng index rallied 4.37 percent. In morning trading, Britain's FTSE 100 was up 1.68 percent, Germany's DAX index was up 0.93 percent, and France's CAC-40 was up 1.72 percent.

Bond prices were mixed early Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, jumped to 2.94 percent from 2.86 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, fell to 0.19 percent from 0.22 percent late Thursday.

The dollar was mixed against other major currencies. Gold prices also fell.

Light, sweet crude for April delivery rose 12 cents to $47.15 a barrel in electronic premarket trading on the New York Mercantile Exchange.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The Dow Jones industrial average closed the week up 597.04, or 9 percent, at 7,223.98. The Standard & Poor's 500 index rose 73.17, or 10.7 percent, to 756.55. The Nasdaq composite index rose 5.40, or 0.4 percent, closing at 1,431.50

A sharp rebound in bank shares and easing worries about the economy pushed stocks to their best week since late November.

The market shot up in one week as it might in some years, with major indicators chalking up gains of around 10 percent.

Friday's gains were modest compared with the rallies on Tuesday and Thursday, but investors welcomed the market's ability to hold its ground. Several recent rallies have ended with disappointing selloffs.


The NYSE DOW closed HIGHER +53.92 points +0.75% on Friday March 13
Sym Last........ ........Change..........
Dow 7,223.98 +53.92 +0.75%
Nasdaq 1,431.50 +5.40 +0.38%
S&P 500 756.55 +5.81 +0.77%
30-yr Bond 3.6720% +0.0370

NYSE Volume 7,943,284,500
Nasdaq Volume 2,081,387,120

Europe
Symbol... Last...... .....Change.......
FTSE 100 3,753.68 +41.62 +1.12%
DAX 3,953.60 -2.62 -0.07%
CAC 40 2,705.63 +11.38 +0.42%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,569.28 +371.03 +5.15%
Hang Seng 12,525.80 +524.27 +4.37%
Straits Times 1,577.52 +83.99 +5.62%

http://biz.yahoo.com/ap/090313/wall_street.html
Financials lead stocks to best week since November
Friday March 13, 6:42 pm ET
By Sara Lepro and Tim Paradis, AP Business Writers
Rebounding financials push stocks to best week since November; market gains for 4th day

NEW YORK (AP) -- A sharp rebound in bank shares and easing worries about the economy pushed stocks to their best week since late November.

The market shot up in one week as it might in some years, with major indicators chalking up gains of around 10 percent.

Friday's gains were modest compared with the rallies on Tuesday and Thursday, but investors welcomed the market's ability to hold its ground. Several recent rallies have ended with disappointing selloffs.

Fears eased during the week that the nation's major financial institutions would collapse or at least require additional government lifelines to stay alive. Market veterans were quick to rein in hopes that stocks would chart an easy recovery but many still saw the four straight days of gains a good sign.

"The overriding question people have is 'Is this rally it?'" said Quincy Krosby, chief investment strategist at The Hartford. "For that to happen I think we need to see more evidence of a turnaround. We still have significant problems in terms of unemployment. The problems with the banks are still there."

On Friday, the Dow Jones industrial average rose 53.92, or 0.8 percent, to 7,223.98. The Dow hasn't put up four straight gains since late November.

The Standard & Poor's 500 index rose 5.81, or 0.8 percent, to 756.55. The Nasdaq composite index rose 5.40, or 0.4 percent, to 1,431.50.

For the week, the Dow jumped 9 percent, the S&P 500 index added 10.7 percent and the Nasdaq rose 10.6 percent. It was the best week for the major indexes since the week ended Nov. 28.

Still, the Dow and the S&P 500 index remain down by about half from their peak in October 2007.

The Dow Jones Wilshire 5000 index, which reflects nearly all stocks traded in America, jumped 10.7 percent for the week. That's a paper gain of about $900 billion.

The turnaround began Tuesday as the head of Citigroup Inc. said the bank had managed to turn a profit in the first two months of the year. That helped ease worries about bad debt that have cloaked financial stocks since the collapse of Lehman Brothers in September.

Traders who last week pounded Citi shares to be low $1 began buying the stock again. The gains in the beaten-down industry were enormous: Citi surged 73 percent for the week, Bank of America Corp. jumped 83 percent and Wells Fargo & Co. rose 62 percent.

Traders are often reluctant to hold on to large positions ahead of the weekend out of fears that bad news could be on the way. Many on Wall Street looked to a weekend packed with events that could have a great affect on trading next week.

Finance ministers and central bankers from the Group of 20 countries were meeting Friday and Saturday outside London, and Federal Reserve Chairman Ben Bernanke was set to discuss the financial crisis in a rare interview to be broadcast on CBS' "60 Minutes" Sunday.

Energy stocks dragged on the market Friday ahead of a weekend OPEC meeting on whether the cartel should adjust oil production. Health stocks rose after Schering-Plough Corp. reported positive trial results for an anti-clotting drug. Merck, which said at the start of the week it planned to acquire Schering-Plough, jumped $3.04, or 12.7 percent, to $27.07.

Financial stocks mostly rose Friday following reports that Citigroup Inc. Chairman Richard Parsons said the bank doesn't need additional government support. Citigroup has received three rounds of emergency funding.

Bank of America Corp. and JPMorgan Chase & Co. also said this week that they have been profitable so far this year. The market has been quick to embrace the encouraging signs about the financial system after weeks of unrelenting selling spurred on by concerns that the government's efforts to break a freeze in lending weren't working.

Investors also grew more confident about the prospects for the economy during the week.

A government report on retail sales for February wasn't as bad as many analysts had feared. Word also arrived that an accounting board may recommend an easing of financial reporting rules of tough-to-sell assets. Banks say a change in so-called "mark-to-market" accounting rules would help their bottom lines.

Officials in Washington also said they would consider reinstating a rule that makes it harder to place bets a stock will fall. Some analysts blame so-called short selling with fanning the volatility in the market, particularly the financial stocks.

Analysts said technical factors that helped drive the market for the week continued Friday, including short-covering, when traders buy stock to cover their short-sale trades.

Despite the glimmers of hope, analysts are still a long way away from declaring that the worst is over.

"We are going to remain cautious because the slightest bit of bad news could turn this thing around," said Joe Arnold, investment adviser at Dawson Wealth Management.

But some unease can be good for the market, Krosby said.

She noted that doubt about the rally and the more incremental gains Wednesday and Friday actually increase the chances it could hold some of its advance.

"Oddly enough, the more skepticism about the duration of the rally the better it is because it's telling you there are still buyers on the side."

Upbeat reports from companies in a range of industries lifted the market after stocks finished at their lowest levels in more than a decade on Monday. General Motors Corp. said Thursday it wouldn't need the latest installment of government bailout money, and a cut in General Electric Co.'s credit rating on the same day wasn't as bad as some had feared.

On Friday, Citigroup rose 11 cents, or 6.6 percent, to $1.78, while Bank of America fell 9 cents, or 1.5 percent, to $5.76. Wells Fargo slipped 1 cent to $13.94.

General Motors extended its gains on Friday, jumping 54 cents, or 24.8 percent, to $2.72. For the week, GM rose 88 percent.

More than 2 stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 6.65 billion shares compared with 7.2 billion shares traded Thursday.

Bonds were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.90 percent from 2.86 percent late Thursday. The yield on the three-month T-bill fell to 0.20 percent from 0.22 percent Thursday.

The dollar fell against other most other major currencies, while gold prices rose.

Light, sweet crude for April delivery fell 78 cents to settle at $46.25 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 rose 1.1 percent, Germany's DAX index slipped 0.7 percent, and France's CAC-40 rose 0.4 percent. Japan's Nikkei stock average jumped 5.2 percent.

The Dow Jones industrial average closed the week up 597.04, or 9 percent, at 7,223.98. The Standard & Poor's 500 index rose 73.17, or 10.7 percent, to 756.55. The Nasdaq composite index rose 5.40, or 0.4 percent, closing at 1,431.50.

The Russell 2000 index, which tracks the performance of small company stocks, rose 42.04, or 12 percent, to 393.09.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 7,675.94, up 740.56, or 10.7 percent, for the week. A year ago, the index was at 13,266.85.

 

[CFDTrading]

Will Bernankes Forecast of 2010 Recovery Spark Bullish Sentiment

Monday, 16 March 2009 12:14:26 GMT
Written by John Rivera, Analyst
Full Article

What To Watch For In The US Session

• Bernanke Predicts Recovery By Year’s End
• Bullish Sentiment Built from Asian and European Rallies
• Industrial Production on Tap

Will Bernanke’s Forecast of 2010 Recovery Spark Bullish Sentiment

Fed Chairman Ben Bernanke in an interview on 60 minutes forecasted that the U.S. economy could recovery by the end of the year, if we have the “political will”. Expiations are that the Fed and the U.S. treasury will ask law makers for more funds to help beleaguered banks as they view the stabilization of the banking sector as the key to an economic recovery. However, after recent reports that AIG gave out a nearly two thirds of the aide it received to trading partners like Goldman Sachs and that it paid $165 million in bonuses, they may be hard pressed to get the additional funding. Several lawmakers have already been critical of further aide and if markets view this as a negative then we could see another sell off of equities. Today’s economic calendar won’t help the Bulls case as industrial production is expected to have declined by 1.3% in February following a 1.8% drop the month prior. Additionally, the NAHB Housing Market Index is forecasted to remain flat in March as efforts to jump start lending have yet to impact the downtrodden sector.

Dow Jones 7223.98
The DJIA futures were pointing toward a higher open as bullish sentiment from Asia and Europe is carrying over. The ability for finance leaders at the G-20 to come to some consensus on focusing on removing toxic assets from banks balance sheets and instituting global regulation to prevent another similar crisis is helping restore confidence. Additionally, Barclays reported that it had a strong start to 2009 adding to the Citibank and Bank of America positive outlooks. However, oil is down over 4% in overnight trading after OPEC said it would cut production further which could weigh on the energy names.

NASDAQ 1431.50
The Nasdaq managed to finish in positive territory ion Friday as it saw profit taking in tech names. We could see resumed buying n the sector today on the broader bullish sentiment which could lift the index higher.

S&P 500 756.55
The S&P 500 continues to be driven higher by financials as confidence is returning to the sector, we could se that continued today on the positive Barclay’s outlook. However, if markets grow concerned that lawmakers will turn off the spigot for troubled banks then we could see a reverse in sentiment.

Current Snap Shot

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The last hour spoilt everybodies day!!!!

Wall Street's big rally fizzled -- and maybe that's OK.

Analysts said Monday's pullback after a four-session surge didn't necessarily signal that traders were reconsidering their newfound optimism about financial stocks, a main driver behind last week's advance.

In fact some viewed the measured easing in stocks as reassuring following a surge of more than 9 percent in major indicators last week, more than the market has moved in some years.

The NYSE DOW closed LOWER -7.01 points -0.10% on Monday March 16
Sym Last........ ........Change..........
Dow 7,216.97 -7.01 -0.10%
Nasdaq 1,404.02 -27.48 -1.92%
S&P 500 753.89 -2.66 -0.35%
30-yr Bond 3.7650% +0.0930

NYSE Volume 8,975,507,000
Nasdaq Volume 2,175,227,750


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,863.99 +110.31 +2.94%
DAX 4,044.54 +90.94 +2.30%
CAC 40 2,791.66 +86.03 +3.18%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,704.15 +134.87 +1.78%
Hang Seng 12,976.71 +450.91 +3.60%
Straits Times 1,586.32 +8.80 +0.56%

http://biz.yahoo.com/ap/090316/wall_street.html

Stocks give up gains after 4-day rally
Monday March 16, 6:10 pm ET
By Stephen Bernard and Tim Paradis, AP Business Writers
Wall Street gives up most of its gains after 4-day rally; Financial stocks pare advances

NEW YORK (AP) -- Wall Street's big rally fizzled -- and maybe that's OK.

Analysts said Monday's pullback after a four-session surge didn't necessarily signal that traders were reconsidering their newfound optimism about financial stocks, a main driver behind last week's advance.

In fact some viewed the measured easing in stocks as reassuring following a surge of more than 9 percent in major indicators last week, more than the market has moved in some years.

"This is healthy," said Dave Rovelli, managing director of trading at brokerage Canaccord Adams in New York. "The best thing for this market is that we don't go up aggressively. A steady rise of a few up days then a down day would be a lot better than 1,000 points up."

Stocks rose for much of the session as investors snapped up hard-hit financial shares. Comments from Federal Reserve Chairman Ben Bernanke and reassuring news from a British bank eased some worries about the overall economy and prospects for financial companies struggling with bad debt.

Bernanke said Sunday the recession would probably end this year if the government's efforts to revive the banking industry succeed. In an interview with CBS' "60 Minutes," Bernanke said fixing the economy will require getting banks to lend more freely and financial markets to work more normally again.

Britain's Barclays PLC calmed investors after saying it has been performing well in 2009. Last week, both Citigroup Inc. and Bank of America Corp., reported that their businesses were stabilizing. The good news from Citi kicked off the market's turn higher last Tuesday.

Market analysts had cautioned since the start of the rally that it could be short, and that stocks were probably not beginning a long-term recovery.

Steven Goldman, chief market strategist at Weeden & Co., said some traders had been skeptical of the rally and suspect it is the type of head-fake that can occur in bear markets. Stocks jumped 20 percent from late November to early January before giving up their gains and sliding.

After the market's recent run-up, he said, "it should be getting bumpier here as we move forward."

On Monday, the Dow slipped 7.01, or 0.1 percent, to 7,216.97. The blue chips rose as much as 169 points during the session.

The Standard & Poor's 500 index fell 2.66, or 0.4 percent, to 753.89, while the tech-heavy Nasdaq composite index fell 27.48, or 1.9 percent, to 1,404.02.

The Russell 2000 index of smaller companies fell 6.73, or 1.7 percent, to 386.36.

More stocks rose than fell even as the major indicators lost ground. Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where consolidated volume came to 7.6 billion shares compared with 6.7 billion shares traded Friday.

It was "a slow bleed into the close," said Ryan Larson, senior equity trader at Voyageur Asset Management. "Nothing specific hit the pavement in terms of negative news. The market's just exhausted at this point."

"Healthy profit-taking is expected, and it happened today."

Investors also found reason to buy in the early going after finance ministers of leading industrialized countries promised over the weekend to do more to fight the global recession. The finance officials said they would help banks sweep up soured assets.

The market's tone has improved in the past week as the reports from banks led investors to reconsider their pessimistic bets. But traders still have their worries, particularly about the financial industry.

American Express Co. fell 43 cents, or 3.3 percent, to $12.66 and dragged on the financial stocks after the company said its credit card holders fell further behind on their bills in February.

The KBW Bank Index, which tracks 24 of the nation's largest banks, slipped 0.2 percent after spending much of the session higher.

Some of the hardest hit banks still showed big gains but ended off their highs.

Citigroup rose 55 cents, or 30.9 percent, to $2.33, while Bank of America rose 42 cents, or 7.3 percent, to $6.18.

David Hefty, chief executive of Cornerstone Wealth Management in Auburn, Ind., said investors have been moving in unison lately.

"Investors have a stampede mentality," he said. "They stampede in and they stampede out."

Bond prices fell Monday as investors gravitated toward stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.96 percent from 2.90 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.23 percent from 0.20 percent Friday.

The dollar mostly fell against other major currencies. Gold prices also fell.

Light, sweet crude rose $1.10 to settle at $47.35 per barrel on the New York Mercantile Exchange.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

You know things have changed on Wall Street when the housing industry saves the day.

A surprise government report that home construction picked up in February caught traders off guard and injected a week-old stock market rally with new energy Tuesday.

Stocks of homebuilders and banks jumped as bullish investors saw yet another sign that the deeply troubled economy was beginning to show signs of stabilizing.

The NYSE DOW closed HIGHER +178.73 points +2.48% on Tuesday March 17
Sym Last........ ........Change..........
Dow 7,395.70 +178.73 +2.48%
Nasdaq 1,462.11 +58.09 +4.14%
S&P 500 778.12 +24.23 +3.21%
30-yr Bond 3.8040% +0.0390

NYSE Volume 7,056,498,500
Nasdaq Volume 2,126,583,250


Europe
Symbol... Last...... .....Change.......
FTSE 100 3,857.10 -6.89 -0.18%
DAX 3,987.77 -56.77 -1.40%
CAC 40 2,767.28 -24.38 -0.87%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,949.13 +244.98 +3.18%
Hang Seng 12,878.09 -98.62 -0.76%
Straits Times 1,559.96 -26.36 -1.66%

http://biz.yahoo.com/ap/090317/wall_street.html
Wall Street resumes rally following housing report
Tuesday March 17, 6:13 pm ET
By Stephen Bernard and Tim Paradis, AP Business Writers
Stocks regain momentum after better-than-expected housing report; Dow jumps 179 points

NEW YORK (AP) -- You know things have changed on Wall Street when the housing industry saves the day.

A surprise government report that home construction picked up in February caught traders off guard and injected a week-old stock market rally with new energy Tuesday.

Stocks of homebuilders and banks jumped as bullish investors saw yet another sign that the deeply troubled economy was beginning to show signs of stabilizing.

Tuesday's rally, which picked up steam as the day went on, wound up pushing the Dow Jones industrial average up 179 points or 2.5 percent. It was the market's fifth gain over the past six trading days.

The construction report was the latest checkmark in a growing list of upbeat news. Traders began reconsidering their dire view of the economy early last week when Citigroup Inc. said it had generated a profit in the first two months of the year.

Other troubled banks handed out similarly upbeat assessments, followed by encouraging reports on key measures of the economy's health such as retail sales.

Since the rally began last week the Dow Jones industrials are up 849 points, or 13 percent. That's the kind of gain that might normally take a year to assemble.

The market has established a clear shift in tone over the past week. Jittery traders had blown apart earlier rallies this year by selling just as stocks managed to advance. A 20 percent run-up from late November until the start of the year fizzled as worries grew about the tattered balance sheets at large banks and signs that consumers will pulling back on their spending.

For the first time in months, traders are starting to allow themselves to think that this past week's rally could be the one that sticks.

"I'd say it's very encouraging, maybe even sustainable," said Randy Bateman, chief investment officer at Huntington Funds, in Columbus, Ohio.

On Tuesday, the Dow rose 178.73, or 2.5 percent, to 7,395.70 after falling modestly on Monday.

Broader stock indicators also showed big gains. The Standard & Poor's 500 index rose 24.23, or 3.2 percent, to 778.12, while the Nasdaq composite index rose 58.09, or 4.1 percent, to 1,462.11.

The Russell 2000 index of smaller companies rose 17.23, or 4.5 percent, to 403.59.

Four stocks rose for every one that fell on the New York Stock Exchange, where volume came to a light 1.49 billion shares. Light volume indicates less conviction behind the market's moves.

Brett D'Arcy, chief investment officer at CBIZ Wealth Management, said the market's measured moves are a great sign because it means traders aren't simply trying to grab quick profits.

Investors embraced the data on home construction that came in well ahead of what economists had been expecting. Building permit applications, a key measure of future activity, also rose unexpectedly.

Tim Courtney, the chief investment officer at Burns Advisory Group, said the report was encouraging. "We could be in the very early stages of some kind of normalization" in housing, he said, one of the most distressed parts of the economy.

Traders snapped up homebuilder stocks after the rare burst of enthusiasm for anything related to the housing market. Pulte Homes Inc. rose 64 cents, or 6.7 percent, to $10.16, while Lennar Corp. jumped 68 cents, or 8.7 percent, to $8.52. Toll Brothers Inc. advanced 95 cents, or 5.9 percent, to $17.06.

Stocks of home-supply retailers like Home Depot Inc. and Lowes Cos. rose more than 6 percent.

Financial shares, which led the rally last week, put up big gains again Tuesday. Banks have been hit hard by souring mortgage debt, and any pickup in housing could help their balance sheets.

Citigroup rose 18 cents, or 7.7 percent, to $2.51, while PNC Financial Services Group Inc. rose $1.19, or 4.4 percent, to $28.51. JPMorgan Chase & Co. rose $2.05, or 8.9 percent, to $25.14.

Traders awaited the outcome of a two-day meeting of the Federal Reserve's interest rate committee that ends Wednesday. The central bank is widely expected to leave rates at their current historically low level, but the market will be keen to see how the Fed sizes up the economy in its statement that accompanies the decision on rates.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.01 percent from 2.96 percent late Monday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.22 percent from 0.23 percent.

The dollar was mixed against other major currencies, while gold prices fell.

Light, sweet crude rose $1.81 to settle at $49.16 a barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 fell 0.2 percent, Germany's DAX index fell 1.4 percent, and France's CAC-40 slid 0.9 percent. Japan's Nikkei stock jumped 3.2 percent.

 

[bigdog]

NYSE Dow Jones finished today at:
Source: http://finance.yahoo.com

The last two hours saved the day!!

The Federal Reserve kept Wall Street's big rally alive -- and gave the Treasury market a huge boost as well.

Both markets surged Wednesday after the Fed said it would pump more than $1 trillion into the economy to help revive the housing market. The plan includes buying up to $300 billion of long-term government bonds during the next six months.

Investors expect the move to drive down borrowing costs for everything from mortgages to credit cards. The Dow Jones industrial average reversed early losses to end up 91 points and the yield on the benchmark 10-year Treasury note plunged, indicating strong demand for the note.

The NYSE DOW closed HIGHER +90.88 points +1.23% on Wednesday March 18
Sym Last........ ........Change..........
Dow 7,486.58 +90.88 +1.23%
Nasdaq 1,491.22 +29.11 +1.99%
S&P 500 794.35 +16.23 +2.09%
30-yr Bond 3.5720% -0.2320

NYSE Volume 10,528,057,000
Nasdaq Volume 2,823,449,500

Europe
Symbol... Last...... .....Change.......
FTSE 100 3,804.99 -52.11 -1.35%
DAX 3,996.32 +8.55 +0.21%
CAC 40 2,760.34 -6.94 -0.25%

Asia
Symbol..... Last...... .....Change.......
Nikkei 225 7,972.17 +23.04 +0.29%
Hang Seng 13,117.17 +239.08 +1.86%
Straits Times 1,575.94 +16.91 +1.08%

http://biz.yahoo.com/ap/090318/wall_street.html

Stocks jump after Fed says it will buy Treasurys
Wednesday March 18, 6:30 pm ET
By Tim Paradis and Madlen Read, AP Business Writer
Stocks rise after Federal Reserve says it will buy up to $300B in Treasurys; Dow gains 91

NEW YORK (AP) -- The Federal Reserve kept Wall Street's big rally alive -- and gave the Treasury market a huge boost as well.

Both markets surged Wednesday after the Fed said it would pump more than $1 trillion into the economy to help revive the housing market. The plan includes buying up to $300 billion of long-term government bonds during the next six months.

Investors expect the move to drive down borrowing costs for everything from mortgages to credit cards. The Dow Jones industrial average reversed early losses to end up 91 points and the yield on the benchmark 10-year Treasury note plunged, indicating strong demand for the note.

The dollar fell as investors worried the government's actions would eventually fan inflation.

The Fed's move, analysts said, is likely to produce an immediate drop in mortgage rates, of 0.25 to 0.5 percent percentage points. The central bank also made clear it would be able to purchase the majority of new mortgage-backed securities for at least the rest of the year, possibly longer.

That's great news for those borrowers with good incomes and healthy credit scores who are able to qualify for a loan. But dramatically tighter lending standards have made it tough for many borrowers to qualify.

Still, it was a plus for the housing industry, which many analysts believe must recover in order for the overall economy to prosper again. Homebuilder and financial company stocks shot higher on the news, which came a day after the Commerce Department reported better-than-expected housing start numbers for February.

The sheer magnitude of the Fed's proposal "indicates they have a lot of weapons still in the arsenal," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

The Fed said it would build on a plan to buy mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. It also will buy an additional $750 billion, bringing its total purchases of these securities to $1.25 trillion. It also will boost its purchase of Fannie and Freddie debt to $200 billion.

The Fed's announcement accompanied its decision to keep interest rates at historically low levels. Chairman Ben Bernanke has said in recent weeks that the recession could end this year if the credit and financial markets can be stabilized. Bernanke and other officials have said they would deploy whatever tools necessary to revive the economy.

"They are certainly, assertively doing everything they can to intervene," said David Darst, chief investment strategist of Morgan Stanley's Global Wealth Management Group.

The Dow Jones industrial average rose 90.88, or 1.2 percent, to 7,486.58.

Broader stock indicators also jumped. The Standard & Poor's 500 index added 16.23, or 2.1 percent, to 794.35, and the Nasdaq composite index rose 29.11, or 2 percent, to 1,491.22.

The Russell 2000 index of smaller companies jumped 14.04, or 3.5 percent, to 417.63.

More than four stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to a heavy 9 billion shares compared with 6 billion shares traded Tuesday.

The market had traded lower ahead of the Fed's decision.

Stocks have risen for six out of the last seven days. Since the market rally began last week, the Dow has jumped 14.4 percent, and the S&P 500 has soared 17.4 percent. Those are the types of gains that would normally make for a great year in the stock market.

Government bond prices surged. The yield on the benchmark 10-year Treasury note, which moves opposite its price, tumbled to 2.50 percent from 3.01 percent late Tuesday. The yield on the three-month T-bill, considered one of the safest investments, slipped to 0.20 percent from 0.22 percent late Tuesday.

The dollar fell against other major currencies. Gold prices also slid as demand for safe haven holdings fell.

For both the stock and bond markets, the Fed's announcement was a welcome surprise. After the last Fed meeting in January, policy makers said they were considering buying government debt. But investors were skeptical the Fed would actually go through with it.

"We've suffered over the last month or so with disappointment that a lot of the initiatives out of the administration haven't materialized, and here is the Fed moving in with very strong actions to get things back on track," McCain said.

The Fed move -- which economists call "quantitative easing" -- is another way to push interest rates lower by essentially adding more money to the financial system. The Fed is using this tool now since its other main policy lever, the federal funds rate, has already been ratcheted down as low as it can go.

Bank stocks -- including Citigroup Inc., Bank of America Corp., Wells Fargo & Co. and JPMorgan Chase & Co. -- got an extra boost after the Fed announcement. The Fed's actions are intended to keep interest rates low and also to unfreeze borrowing activity, which could be a huge help for banks.

Citi and Bank of America each jumped more than 22 percent, while Wells Fargo rose 17.5 percent and JPMorgan added 7.8 percent.

Home builders put up huge gains as well. Hovnanian Enterprises Inc. jumped 50 percent to $1.44, while Toll Brothers Inc. rose 5.7 percent. Home improvement retailers jumped as well. Home Depot Inc. rose 5.1 percent and Lowe's Cos. added 4.7 percent.

Technology stocks rose on news that International Business Machines Corp. is in discussions to buy Sun Microsystems Inc. for at least $6.5 billion in cash. Sun skyrocketed 79 percent, rising $3.92 to $8.89. IBM fell 96 cents, or 1 percent, to $91.95.

Investors are growing more hopeful that the rally in stocks might have staying power, though many remain cautious. Stocks gained 20 percent from late November until the start of the year, only to come crashing down to levels not seen in more than a decade as worries grew about the stability of the financial system and the economy's ability to turn higher.

As the Federal Reserve announced its plans, Capitol Hill focused on the millions of dollars in bonuses American International Group Inc. recently granted executives. AIG is roughly 80 percent owned by the government after receiving billions in federal bailout money.

President Barack Obama said he is seeking greater regulatory authority over financial institutions like AIG. Obama said the new powers he is seeking would be similar to those now exercised over banks by the Federal Deposit Insurance Corp. It would be part of the broader financial regulatory steps the administration is creating.

AIG rose 44 percent to $1.38.

Meanwhile, an unexpected build in gasoline inventories helped send oil prices lower. Light, sweet crude fell $1.02 to $48.14 per barrel on the New York Mercantile Exchange.

Overseas, Britain's FTSE 100 fell 1.4 percent, Germany's DAX index rose 0.2 percent, and France's CAC-40 fell 0.3 percent. Japan's Nikkei stock average rose 0.3 percent.