Big Gain Ends Wall St.'s Nightmare October

Despite Bad News On Consumer Spending, Dow Closes Up Nearly 150 Points

(AP)  The stock market closed out a horrendous October, its worst month in 21 years, with a big advance Friday as more investors took chances on stocks turned into bargains by waves of intense selling. The advance - which gave the market its first back-to-back gains in more than a month - raised hopes that Wall Street has indeed found a bottom.

The Dow Jones industrials rose 144 points on the day but ended the month down 14.1 percent, while the broader Standard & Poor's 500 index lost 16.9 percent during October as the stock market fell victim to investors' anguish over frozen credit markets and what looked like an inevitable recession.

But the month did end on a far more upbeat note than anyone might have expected at the height of investors' despair just weeks ago. The Dow was up 11.3 percent, while the S&P 500 index rose 10.5 percent - a sign of stability that followed a growing sense that the series of government moves to unlock the credit markets would indeed help the economy move toward recovery.

Investors who have become used to bad economic news dealt calmly Friday with data showing a drop in consumer spending. Another reason for the advance: Funds that dumped stocks furiously as the end of their fiscal year approached were finished with their selling.

While the market capped a terrible month with a strong week, it will need to put the presidential election next week behind it and focus on the October employment report due next Friday before committing to a direction. The jobs report should provide some insight into how long and how severe the economic downturn could be.

The market is "settling into a little bit of a holding pattern" ahead of the election and jobs report, said Craig Peckham, market strategist at Jefferies & Co. "The fear level has clearly subsided, but there's still a pervasive tone of unease."

The Dow rose 144.32, or 1.57 percent, to 9,325.01 after rising as much as 274 and falling 62.

Broader stock indicators also advanced. The S&P 500 index rose 14.66, or 1.54 percent, to 958.75, while the Nasdaq composite index rose 22.43, or 1.32 percent, to 1,720.95.

The Russell 2000 index of smaller companies rose 23.34, or 4.54 percent, to 537.52.

Advancing issues outnumbered decliners by about 5 to 2 on the New York Stock Exchange, where volume came to a moderate 1.57 billion shares. Lighter volume can raise questions about the conviction behind the market's moves.

October marked the Dow's worst percentage loss since 1987. But the 11.3 percent gain for the week gave the Dow its best weekly performance since Oct. 11, 1974.

Still, the market's stats during the month of October were unnerving:

During the week of Oct. 10, the Dow plunged 1,874.19 points, or 18.2 percent. The week's decline accounted for half of the blue chips' losses for the entire year.

The Dow fell for eight straight sessions - the longest losing streak since the eight days of declines following the Sept. 11, 2001, terror attacks, when the blue chips lost 1,038.12, or 10.8 percent. It lost a staggering 2,400 points.

The market's volatility was so intense that there were just three days during the month that the Dow didn't rise or fall in triple digits.

[iphyt4u]

Market went up for no reason this week. It''s about 1500 points over value. Watch for a downward correction. Save your money, things are going to get tough.

[ubrew12]

We can''t let Wall Street tank.

It might actually begin reflecting the value of our economy...

[wwudiver]

Is anybody noticing the $500Billion raise in our debt?

http://www.cbsnews.com/stories/2008/10/31/politics/main4562416.shtml?tag=topHome;topStories

We are paying wall street. Of course it will send stocks up but you are paying over your lifetime for this. This lack of responsibility of leaders to allow inflationists in business to pay a fair penalty for their deeds. This is raw unadulterated Fascism. Military based economy, conglomeration of wealth, paranoia, national unity, and totalitarian militant forces. Each form of fascism is unique and ours is no exception. Under socialism, businesses that are socialized are not allowed to profit. They operate under the guise of utilitarianism, that the state is benefiting the most possible people. This system is called corporatism (acronym for fascism). Where the state assists in stratifying wealth and acts under the benefit of a a few protected businesses. Under capitalism, poor business fail and the needs are filled by a more competitive and effective company.

[hunterdon6]

One year ago the stock market was at 14,000. A 5,000 drop in one year. When the Democrats took over both the house and senate, bad things started to happen. And the next 4 years will be even worst if the Dems remain in control!!!!!!!!!!!

[ricklf1]

If you or I want to blame someone for the ROOT CAUSE of this problem....look in the mirror! Our laid-back attitude over the past 4 decades in this country allows "OUR" Government to be dictated to and "PAID FOR" by Bankers and Wall street Fat Cats. If you and I don''''''''t stand up and say "NO MORE", than your children and grandchildren will suffer in their adult lives as "ECONOMIC SLAVES" YOU MUST GO OUT AND VOTE!!!

[incog-nito]

Not to rain on anybody''s parade, but this is just a dead cat bounce fueled in part by the rate cut. The fundamentals are still very bad. Consumer confidence is down. Unemployment is up, with companies announcing layoffs every other day. The national debt just shot up due to the bailout. Outsourcing continues unabated. The trade deficit keeps widening as we lose our manufacturing capability. Etc. Etc.

These things just don''t magically fix themselves. And other than their tax plans which economists consider costly and unrealistic, neither candidate has a real plan to fix the economy. The reality may be that there is really not much they, or anybody, can do about it anyway.

[cfin5]

You "stockollacoaster" nail biters need till chill. Take a few Valerian Root capsules how''bout it? When McCain/Palin win it will shoot up and hover around 12,000 before November passes. If Obama wins, better cash in and do it quik,.....money will leave our market as fast as it did in Russia recently.

[joe68sg1]

Big Gain Ends Wall St.''s Nightmare October

Give me $700,000,000,000 and it will end my nightmares too.

How can they not gain with our gift to them?

We should be locking them up, not bailing them out.

I can''t believe the DEMS are going along with this.
The CONS I can understand...they keep pushing trickle down.

Well, trickle down does not work. It never has, and never will.

Give the breaks to the people that need it the most, average Americans !!!

Let''s get rid of the republiCON idiots this time and bring sanity back to government.

Government for the people, not corporations !

[wl7bzh]

I buy moose by the pound!

I will pay 25 cents a pound for fresh moose!

Call me anytime at: 907.269.7450

Posted by mooseisgood at 02:01 PM : Oct 31, 2008

If you think it''s going to improve the appearance of your hair, you may need to get a dictionary.

[lloydbest1]

The roller coaster isn''t over yet. We still have global debt exceeding global assets. Some of that will have to be written off. The recent stock market gains are a response to lowering interest rates and easing credit. I don''t see how the presumed assumption of any additional debt stacked on top of what we already have can improve matters.
We still have a huge percentage of Americans who owe more on their mortgages than their homes are now worth. I don''t know how much that "huge percentage" is but no one else does, either; and that is as frightening as the reality of negative equity.
The specter of massive layoffs looming on the national consciousness is one reason consumer confidence is in the loo. The possibility of my having to stand in a bread or soup line, however unlikely, does not amuse me. That I would be sharing space with some of those erstwhile rich who had a hand in creating this crisis is of no comfort. For my part I will eliminate ALL discretionary spending. I was recently informed by my employer that he will, too. So much for my raise and any hope of a bonus.
70% of our economy is dependant on consumers consuming. A lot of our trade is with foreign customers but since no one''s spending any money "over there" either, there isn''t much joy for those whose customer base is international.
Any hopes of turning our economy around is contingent on boosting consumer confidence. If I am any indication of the national sentiment, that ain''t gonna happen for a while.

[lovegetpeace]

Posted by globalcrisis at 06:36 PM : Oct 31, 2008

Social Economics repeat itself exactly every 60 years. Grandparent''''s Wisdoms never makes it to the 3rd generation (grandsons/daughters).

Our DNAs never inherent wisdoms.

[lovegetpeace]

Posted by globalcrisis at 06:36 PM : Oct 31, 2008

Social Economics repeat itself exactly every 60 years. Grandparent''s Wisdoms never makes it to the 3rd generation (grandsons/daughters).

[lovegetpeace]

Posted by globalcrisis at 06:36 PM : Oct 31, 2008

Social Economics repeats itself exactly every 60 years. Grandsons/daughters never learns anything from his Grandparents.

[lovegetpeace]

Folks,
Well, we were all expecting an ''October Surprise'' from the Bush Administration and we got it with cream and some spice. Do you have a job? Are you better off now than 8 years ago? etc, etc.

[generey]

Big Gain Ends Market''s Nightmare October.


Well that SUCKS!!! :)

[txgrouch2007]

CONFLICT OF INTEREST is what you call it when the GOVERNMENT BUYS STOCK IN COMPANIES THEY REGULATE.

The $700 billion bailout funds have been DIVERTED. Instead of buying subprime loans as promised, Congress has announced that it will use the $700 billion to BUY STOCK IN BANKS instead.

Pelosi promised "the most ethical government ever." Instead, she is in the driver''s seat of THE MOST CORRUPT CONGRESS ever.

Republicans don''t have a majority in either house of the Congress. THE DEMOCRATS ARE INVOLVED in whatever Congress does.