Bargain Hunters Shoot Stocks Up 550

Dow Briefly Drops Below 8,000 Mark Before Staging Massive Rebound

(CBS/AP)  Wall Street launched a massive rebound Thursday, sending the Dow Jones industrial average up nearly 553 points at closing after driving it below the 8,000 mark, as investors decided they did not want to miss out on buying stocks at cheap prices.

The Dow closed around the 8,800 mark; during the day it did not sink below its Oct. 10 trading low of 7,882.51.

After three days of selling that wiped out about $1 trillion in shareholder value, many investors, though nervous about the economy, believed the market had priced in enough bad news. So when the Standard & Poor's 500 index managed to recover from multi-year trading lows, investors swarmed back in.

It's "a herd mentality," said Ryan Larson, senior equity trader at Voyageur Asset Management. "We started going higher - and you don't want to be the last one on the boat."

As stocks rallied, so did oil prices, sending shares of energy companies higher. The biggest gainer among the 30 Dow companies was Chevron Corp., which rose $8.43, or 12.5 percent, to $75.71. Another big gainer was Exxon Mobil Corp., which climbed $6.48, or 9.4 percent, to $75.41; these two energy stocks represented one-fifth of the Dow's point gain Thursday.

The stock market's initial selloff began after the Labor Department reported that the number of newly laid-off individuals seeking unemployment benefits jumped last week to a level not seen since just after the Sept. 11, 2001, terrorist attacks.

And there were more signs of a severe pullback in consumer spending, a troubling trend that had pummeled stocks earlier in the week. Wal-Mart Stores Inc. trimmed expectations for full-year earnings, and Intel Corp. late Wednesday cut more than $1 billion from its sales forecast, providing more evidence that few industries are safe from a clampdown on spending by businesses and consumers alike.

But then the S&P lifted above its Oct. 10 trading lows, and a Treasury auction of 30-year bonds got decent demand from both domestic and foreign buyers, said Arthur Hogan, chief market analyst at Jefferies & Co. The auction results alleviated some fears that the government will have a hard time financing its costly bailout.

Hogan called it a "great sign" that the S&P recovered after falling below its Oct. 10 trading lows. "Historically, if you test a low within 45 days and close above it, it's very bullish," he said.

According to preliminary calculations, the Dow rose 552.59, or 6.67 percent, to 8,835.25, after falling as low as 7,965.42 and rising as high as 8,876.59. That's a trading range of 911 points. The Dow did not sink below its Oct. 10 trading low of 7,882.51.

The Dow's nearly 553-point gain was the third-largest single-session point gain on record, following the 889-point rise on Oct. 28 and the 936-point surge on Oct. 13.

The Standard & Poor's 500 index rose 58.99, or 6.92 percent, to 911.29, after dropping to 818.69 - well below its intraday low of 839.80 on Oct. 10.

The Nasdaq composite index rose 97.49, or 6.50 percent, to 1,596.70.

The Russell 2000 index of smaller companies rose 38.43, or 8.5 percent, to 491.23.

The stock market gained back $700 billion Thursday, after losing about $1 trillion during the first three days of the week, according to the Dow Jones Wilshire 5000 index, which reflects the value of nearly all U.S. stocks. At its lowest trading level Thursday, the market value of the Wilshire index fell below $10 trillion for the first time since April 2003.

Advancing issues outpaced decliners by nearly 3 to 1 on the New York Stock Exchange, where volume came to 1.99 billion shares.

The price of a barrel of light, sweet crude rose $2.08 to $58.24 on the New York Mercantile Exchange, after falling to the lowest levels since January 2007.

Government bond prices fell as investors fled back into stocks. The three-month Treasury bill's yield rose to 0.20 percent from 0.13 percent late Wednesday, and the yield on the benchmark 10-year Treasury note rose to 3.88 percent from 3.67 percent late Wednesday. Higher yields indicate lower demand.

Wal-Mart shares rebounded $2.31, or 4.4 percent, to $54.93. The discount retailer's shares had traded lower in earlier trading after it cut its profit outlook because of the flagging global economy and renewed strength of the dollar. Wal-Mart is the only company among the Dow industrials that is up for the year.

Intel also slashed its outlook, initially driving down shares on concerns that consumers are shying away from big purchases like computers. But its shares recovered to trade up 91 cents, or 6.7 percent, to $14.43.

General Motors shares, however, remained weak as the nation's automakers wait for President-elect Obama to push Congress to approve a bailout of the struggling industry. There are also reports that Obama will move to appoint a czar or board to oversee the companies. GM dropped 13 cents, or 4.2 percent, to $2.95. Ford shares rose 6 cents, or 3.3 percent, to $1.90.

The dollar was mixed against other major currencies. Gold prices rose.

Overseas, Japan's Nikkei closed down 5.25 percent and Hong Kong Hang Seng fell 5.15 percent. In European trading, London's FTSE 100 was down 0.31 percent, Germany's DAX rose 0.62 percent, and France's CAC-40 added 1.10 percent.

[irmcvet97]

Wonder what Bush would want to leave early?

[hennighg]

Thank god Obama won. 4 more years and we''d all be working for Thailand. Didn''t this happen under Hoover, too?

[billh971]

I voted for Obama. It took 8 years to get here. It might take 8 years to get out of this hole. Lets give Pres elect some time please!

[brianp55]

Make no mistake about it, all of this current economic turmoil and the misery it is inflicting upon ordinary citizens (many of whom have lost their jobs), is the result of unrestrained G-R-E-E-D. This is what happens when the Republicans worship at the altar of Deregulation and the Democrats think everyone should own a home, regardless of whether or not they can afford it. In other words, we have our elected officials to thank for this mess. Just look at Pelosi''s latest admonishments to bail out the US auto industry. The blogs are running 10-to-1 against such an action, yet, our politicians are determined to thwart the will of the electorate and infuse taxpayer money into these terminally ill corporations.

[wolcotton]

Hmmm. Last I looked George Bush was still in office - even if he seems to have short-timer''s syndrome. So I agree for sure with billh971: let''s give the president-elect some time...to get sworn in at least! It''s a little hard to judge his performance as president until he actually is, don''t you think? [mutter mutter grumble]
Laughing on the outside...
cord

[donevis-2009]

What the he11 is going on with the market today?? Swings of hundreds of points? In 35 years of watching the ticker I''ve never seen such changes in one secession. Seems like someones messing with because it would be a negative milestone to be in the 7000 range.

[petro49l]

American economy does not need George W. Bush. He prefers powerful alcohol, illicit narcotics, and illegal pornography. Former GOP Cumberland County (PA) Commissioner Bruce Barclay echoes Bush''s lust for immoderate homosexuality. Those who suffer from extreme addictions should never lead this country. The United States needs industrial jobs. A real plan is opening new steel mills, automobile making plants, and oil drill sites. Al Gore''s call for a sanitary environment is obsessive, delusional, and paranoid.

[steamed2]

As a retired police fraud investigator I can tell you that a forensic audit of the financial instruments and unsound business practices responsible for the crime won%u2019t make the company healthy again unless real changes are made. It may sound radical, but only a total restructuring of Congress can cure the abomination we are witnessing. Impotent committees allegedly assembled to investigate such criminal business practices are a waste of time, no blame is ever fixed, no crime ever prosecuted! Our Congress has convincingly demonstrated they are unable to end the institutionalized graft and collusion, legislated incompetence, and bribes (AKA lobbying), that has become endemic in the surreal world they exist in. One example is the illegal gambling in swap derivatives, a bizarre artificially made-up financial instrument basically kept secret from the public and yet sanctioned by our own government! Good grief! The citizens of this country need to take some kind of effective action. We need to remove them, regardless of the state or party affiliation they represent, through whatever means available. If we elected them, we can recall them too. Below are two web sites that list addresses and email for every congressman and senator from every state. Send an email and let them know their time is up. https://writerep.house.gov/writerep/welcome.shtml
http://www.senate.gov/general/contact_information/senators_cfm.cfm

[letsbefriend]

I have come to the conclusion that most politicians are professional liars.They promise the moon and we wind up with rocks.The Republicans promised fiscal restraint and we are stuck with a trillion dollar economic mess.Who''s pen has the power to veto any legislation passed by congress? There is no need to blame anybody but the politicians who have lied to us for 8 years and I guess the people have spoken.Good riddance to all the liars and politicians who have put this country into a deep financial pit.Jimmy

[gop_will_win]

What the he11 is going on with the market today?? Swings of hundreds of points? In 35 years of watching the ticker I''''ve never seen such changes in one secession. Seems like someones messing with because it would be a negative milestone to be in the 7000 range.


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Posted by donevis at 02:53 PM
===============================
Computerized buy programs kick in when the DOW hits the 8,000 mark. Buy at that point and sell at 8,800 or like me in a few minutes before the close.

[txgrouch2007]

What the he11 is going on with the market today?? Swings of hundreds of points? In 35 years of watching the ticker I''''ve never seen such changes in one secession. Seems like someones messing with because it would be a negative milestone to be in the 7000 range.
Posted by donevis at 02:53 PM : Nov 13, 2008

Sure you have. It was just before the crash of 1987.

Oh, yeah.....

[txgrouch2007]

Yah, that was some jolt. The market closed UP over 5%.

We could use a few more jolts like that.

[donevis-2009]

Sure you have. It was just before the crash of 1987.
Oh, yeah.....
Posted by txgrouch2007 at 03:48 PM : Nov 13, 2008 I wrote swings not drop. As of now its a 650 pnt difference!! 87 was a 400+ drop.

[donevis-2009]

Compu
terized buy programs kick in when the DOW hits the 8,000 mark. Buy at that point and sell at 8,800 or like me in a few minutes before the close.

Posted by gop_will_win at 03:44 PM : Nov 13, 2008

So who''s money does the computer Use?

[donevis-2009]

My Lord, It''s now a 800 pnt swing!! Lets see where the sucker winds up. Wada Day!!!

[thcarson-2009]

I have come to the conclusion that most politicians are professional liars.They promise the moon and we wind up with rocks.The Republicans promised fiscal restraint and we are stuck with a trillion dollar economic mess.Who''''s pen has the power to veto any legislation passed by congress? There is no need to blame anybody but the politicians who have lied to us for 8 years and I guess the people have spoken.Good riddance to all the liars and politicians who have put this country into a deep financial pit.Jimmy


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Posted by letsbefriend

Seeing as the wise American public voted mostly for incumbents in the past election, I don''t think much will change at all. We need term limits on congress and senate positions just as badly as we need them on the president.

[mcv57]

Watch for the Hedge Fund kill tomorrow, they alway do this number despite reason. It''s called "Chicken", ... who will flitch first for the crumbs.

Business as usual, no accountability, corruption, and greed = volitility.

[edward1975-2009]

letsbefriend: Doesn''t matter who has veto power, when you have a spineless Congress, you don''t need it. The excuse of veto is the ones Democrats use to explain their lack of a spine. They rubberstamped a lame-duck Presidents agenda and the voters rewarding this brand of cowardice with voting more of the spineless fools in. We deserve all we get.

[gce65]

So the Dow drops below 8000, then rebounds to close 500 points up in the same day. That''s called VOLATILITY.

And it jumped back up into positive territory just after Bush gave his pro-free market economics speech today. That just means it was manipulated by his little stunt, not that it was anything sustainable.

Would you comfortable--and have confidence--in a rowboat experiencing the same kind of volatility? Probably not. That''s why the markets are steadily going down over the last year or two.

[gce65]

Seeing as the wise American public voted mostly for incumbents in the past election, I don''t think much will change at all. We need term limits on congress and senate positions just as badly as we need them on the president.


Posted by thcarson at 04:07 PM : Nov 13, 2008
-------
And just who do you think will pass legislation for term limits on members of Congress? Congress itself is the only body that can do it legally, but there''s no chace they will.

[inventagod2]

When rich Republicons manipulate the market, this is normal. Move along, no news here...

[donevis-2009]

So the Dow drops below 8000, then rebounds to close 500 points up in the same day. That''''s called VOLATILITY.

I call it INSANE. A thousand point difference in one session?? The markets getting ready to blow like a keg of nitro. With these swings one can see the sweat. I think I''ll stash mine in the mattress.

[whitemale08]

This is just another ''pump and dump'' day as vultures on Wall Street will collapse and dump the market big time on Nov 17 after Nov 15th''s Bretton Woods conference (because nothing significant will come of it)

Mark my words.

[gop_will_win]

I made $6,000 om MS this afternoon. Bought when the DOW hit 8K and sold just before closing. Haha libs, GOP wins again. Thank the Lord for computer buying programs.

[gop_will_win]

Compu
terized buy programs kick in when the DOW hits the 8,000 mark. Buy at that point and sell at 8,800 or like me in a few minutes before the close.

Posted by gop_will_win at 03:44 PM : Nov 13, 2008

So who''''s money does the computer Use?


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Posted by donevis
=======================
Mutual and hedge funds money. They buy and sell based on computer programs.

[simplemind2]

"Stocks Up 500 Pts." - doesn''t mean a thing!
The problem is called "Bargain Hunters" syndrome - short timers - bought and sold within a few days plus day traders - bought and sold on the same day.
We are far from recovery yet!
Geeeesh!
Sad!

[iphyt4u]

Your not getting bargains until it goes under 7,000, and it will. The big three should get nothing, and a whole new type of vehicle will emerge. We''re Americans, let us invent. The automobile business is a three headed monopoly. Capitalism is great, but we have to modify it.

[whatithink10]

pelosilover,

Lotta BS because McCain supporter''s EGOS can''t get over election results.

[cfin5]

Even if I had the money to play around with the roller coaster rides at Wall Street Amusement Park,.....I would not buy a ticket anyhow. My income is steadily increasing quite nicely since 2006. If you call this a bad economy, gimme some more! It''s even getting better since fuel is out of the ouchisphere......I''m ready to rock and roll next year. You folks believe what these "economic experts" keep telling you all you care. Heh, you''ll probably hear the oil companies whining for a bail out soon,....LOL!!!

[generey]

Just a big game people. Just a game.

[whatithink10]

pelosilover,

Bush lowered the capital gains taxes and it has created a mess. Why should a hedge fund manager pay less in taxes than a doctor?

[cfin5]

Bush lowered the capital gains taxes and it has created a mess. Why should a hedge fund manager pay less in taxes than a doctor?


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Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Your first sentence of ignorance discredits your second my friend. Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

[ddaryl1]

Stock markert sees 3rd best 1 day gain. It must be the Obama effect.

Sorry I had to do it, I just had to combat the republican stupidity that surrounds us. The last 3 days were Obamas fault according to the not so bright.

[dkhorse1]

America is a nation of importers, I love tech toys but NONE are made in America. Any business major should be able to tell you that you need to sell more then you buy to be viable. America used to be that way until businesses learned they could increase their bottom line and shareholder wealth by shipping their manufacturing overseas.
Until we bring manufacturing back to America, government injections of money won%u2019t matter in the long term. Sure stimulus checks help RIGHT NOW, but admit it, they don%u2019t last for ***.

America won%u2019t improve until jobs COME BACK.

[rlenham-2009]

Bargain hunters... bull... 900 pt fluctuations are cause by manipulators using sophisticated computer algorithms... the ordinary investor does not cause shifts of this magnitude.. these manipulators need to be regulated.

[lovedw]

If the market hasn''t hit bottom yet, it''s very, very CLOSE! In the next few weeks, I expect a MONSTER rally that could send the Dow skyrocketing 3,000 points or more!

That means you could make some of the biggest, fastest profits of your investing career simply by buying now!

[dkhorse1]

That means you could make some of the biggest, fastest profits of your investing career simply by buying now!

Posted by lovedw at 08:19 PM : Nov 13, 2008

You must work on Wall Street. Trying to boost your portfolio. Rallying the chumps.

[humanavance]

Pushing the string ...
ST

"History is replete with examples of its own iteration."
SearingTruth

A Future of the Brave

[mikezembill]

I LOVE TO SHORT SELL

[sgarrod1]

Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

Let me see if I have this right: it is the greed (sorry, "personal ambition") of those misguided Scandinavians like the Norwegians and the Danes that enables them to enjoy the highest standard of living AND quality of life in the western world despite the active role of the governments they elect in their economies, right?

[donevis-2009]

Bargain hunters... bull... 900 pt fluctuations are cause by manipulators using sophisticated computer algorithms... the ordinary investor does not cause shifts of this magnitude.. these manipulators need to be regulated.

Posted by rlenham at 07:48 PM : Nov 13, 2008

Finally a post that makes some sense. Thanks for stating the obvious as most posting here seem to be blind to the dark side of this situation. Ride the wave my A$$, this whole thing is out of a bad novel and I''m afraid of the last chapter. Hang on people we''re ready to start the E ride. "God Speed USA"

[sgarrod1]

Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

Let me see if I have this right: it is the greed (sorry, "personal ambition") of those misguided Scandinavians like the Norwegians and the Danes that enables them to enjoy the highest standard of living AND quality of life in the western world despite the active role of the governments they elect in their economies, right?

[mikezembill]

SINGINRICH DONT YOU JUST LOVE THIS MAKING ALL THIS MONEY ON THE SHORT SELL I AM MAKING MORE MONEY THAN EVER I LOVE IT JUST LOVE IT.

[sgarrod1]

Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

Let me see if I have this right: it is the greed (sorry, "personal ambition") of those misguided Scandinavians like the Norwegians and the Danes that enables them to enjoy the highest standard of living AND quality of life in the western world despite the active role of the governments they elect in their economies, right?

[sgarrod1]

Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

Let me see if I have this right: it is the greed (sorry, "personal ambition") of those misguided Scandinavians like the Norwegians and the Danes that enables them to enjoy the highest standard of living AND quality of life in the western world despite the active role of the governments they elect in their economies, right?

[mikezembill]

My god my banker thinks i am selling drugs do not think i could make this kind of money selling drugs.

[sgarrod1]

Posted by whatithink10 at 06:34 PM : Nov 13, 2008-------Personal ambition creates wealth, not socialist tyranny of any kind,.....especially economic.

Let me see if I have this right: it is the greed (sorry, "personal ambition") of those misguided Scandinavians like the Norwegians and the Danes that enables them to enjoy the highest standard of living AND quality of life in the western world despite the active role of the governments they elect in their economies, right?

[rhs648]

Most people like a sale. The best thing successful investors have going for them is investor pyschology. When the market is down, panick selling sets in. When the market is going up, people jump into the market. When this happens, many investors are already on their way to the bank with their profits. It is difficult for many people to invest when the markets are down. Somehow, these people seem to feel the economy and the markets will never rebound. History has repeatedly shown that the economy rebounds from recession. The low prices in the stock market may not be repeated for 5, 10, 15, or 20 years once the economy improves. Why not take advantage of the sale prices.

[rhs648]

The salvation of the housing market will be people buying homes at attractive prices. There are many people ready to jump into the housing market when they feel homes are selling at bargain prices. Sure, you need good credit and a down payment. The three homes I purchased over the years all required good credit, a down payment, and settlement costs. It is only in recent years thast we saw no down payment loans, interest only loans, adjustable rate loans, and no outlay for settlement costs. When people don''t have anything vested in their homes, it is easy to walk away from them. If a person chances losing a $20,000 down payment by defaulting, they are less likely tp walk away from a home. Again, the excess inventory of homes will dwindle as bargain seeking people jump back into the housing market

[hotwitch]

Wow ! Can''t get enough of all this free investment advice from the blog-o-sphere.... everyone''s an expert, after the fact.