Optimistic Investors Fuel Wall. St. Rally

Dow Eclipses 8,000 Mark During The Day, But Sheds Some Gains; Advances More Than 200 Points

(CBS/AP)  Investors dove into stocks on Thursday, sending the Dow Jones industrials soaring above the 8,000 mark for most of the day. It had been nearly two months since stocks eclipsed that mark.

The Dow slipped back below 8,000 points by the end of the afternoon, but still gained more than 200 points.

Market surged following an accounting rule change that could strengthen banks' balance sheets and fresh efforts by world leaders to fight the financial crisis.

Stocks rallied across the board in heavy trading, with industrial and consumer discretionary stocks picking up speed as hopes for an economic turnaround increased. As Wall Street charged ahead, demand for safe-haven assets like gold, Treasurys and the dollar plummeted.

"Everyone is in a buying mood," said Eric Ross, director of research at brokerage Canaccord Adams. "Everyone is feeling good. ... A lot of this is simply confidence."

Banking shares got a significant boost after a rulemaking body for the accounting industry relaxed financial reporting rules that force banks to value their assets at current market prices.

The change in "mark-to-market" accounting rules, which should help banks reduce losses, sends another lifeline to the troubled financial industry. Many investors believe financial stocks, which have largely carried the market's four-week rally, are a gauge of when the economy is turning.

The advance, which built momentum as the day went on, came as finance ministers finished a one-day summit in London to discuss efforts to fix the global economy. While the G-20 leaders did not satisfy calls for new stimulus measures, they pledged an additional $1.1 trillion in financing to the International Monetary Fund and declared a crackdown on tax havens and hedge funds.

According to preliminary calculations, the Dow rose 216.48, or 2.79 percent, to 7,978.08. The index had added over 300 at several points in the day before shedding some of its gains late in the day

The Standard & Poor's 500 index rose 23.29, or 2.87 percent, to 834.37. The Nasdaq composite index rose 51.03, or 3.29 percent, to 1,602.63.

Another positive indicator on the economy also lifted sentiment on Wall Street. Factory orders posted a large increase in February, coming on the heels of better-than-expected readings on pending home sales, manufacturing activity and auto sales the day before.

The Russell 2000 index of smaller companies jumped 23.43, or 5.5 percent, to 452.59.

For every three stocks that fell, nine stocks rose on the New York Stock Exchange where volume came to 1.1 billion shares.

Since a nearly 12-year low on March 9, the Dow is up about 19 percent. While analysts have warned that the market could retest the lows hit early last month, there's no doubt a growing sense on Wall Street the economy, at least stateside, might be bottoming out.

"The market mindset is: OK, we're not in a tailspin," said Jack A. Ablin, chief investment officer at Harris Private Bank.

The market has managed to shrug off data showing that the job market remains extremely weak. On Thursday, the Labor Department reported a surprisingly large rise in last week's jobless claims, and on Wednesday, data from a research group showed a bigger-than-expected March decline in private sector employment.

Wall Street could be in for a nasty surprise on Friday, however, if the closely-watched monthly employment report comes in worse than expected. Economists currently predict the report will show a loss of 654,000 jobs in March following a decline of 651,000 jobs in February, which was a record third straight month of job losses above 600,000.

Investors could also get other bad news soon as first-quarter earnings start to roll in over the next few weeks. Expectations are already low, but pessimistic forecasts for the rest of the year from companies could easily unsettle the market.

Among the biggest advancers in the financial sector Thursday were Wells Fargo & Co., which jumped 58 cents, or 4.1 percent, to $15.06, and Goldman Sachs Group Inc., which rose $3.81, or 3.5 percent, to $114.10. Regional banks also rose sharply.

The benchmark 10-year Treasury note fell nearly 1 point, sending its yield up to 2.75 percent from 2.66 percent late Wednesday. The dollar fell against other major currencies after the European Central Bank cut its key interest rate by less than expected. Gold prices also fell.

Oil prices benefited from the better-than-expected economic news. Light, sweet crude jumped $4.21 to $52.60 a barrel on the New York Mercantile Exchange.

Stocks are still well below their October 2007 record highs, however, and the market just finished one of its most tumultuous quarters on record on Tuesday. Investors got another dose of volatility on Monday, when stocks dropped sharply as the Obama administration raised the possibility of a U.S. automaker bankruptcy.

"It's premature to suggest that we're out of the challenges," said Richard Hughes, co-president of Portfolio Management Consultants. "But it's equally worthwhile to acknowledge that the rate of decline (in economic data) has subsided in the last 30 to 60 days."

Overseas markets also logged big gains. Japan's Nikkei stock average rose 4.4 percent, while Hong Kong's Hang Seng index jumped 7.4 percent. In Europe, Britain's FTSE 100 rose 4.3 percent, Germany's DAX index rose 6.1 percent, and France's CAC-40 rose 5.4 percent.

[sjc_1]

Buyers may be willing to come out, because hiding in 2% T bonds is not doing much. This does not mean that it is a sustainable rally, but if issues continue to be addressed and progress is made it might be. After that, we should expect to see job loses per month reduced.

There has been a multitrillion dollar hole blown in the economy. No amount of hand waving or pretending is going to change that. Just make believe that it will all take care of itself is foolish. If you want to wait 10 years for a self recovery, then so be it. Most people can not wait that long.

[sndkzyaa]

Now here's more material that Rush should pay for:

After the crash in the fall of 1929, the stock market rose by 25% in the first quarter of 1930. And yes, you do need to explain that 1930 is after 1929 because I've learned that there are actually some liberals who can't figure that out for themselves. No, I'm serious.

So even if you overlook the brief rally around New Year's Day 2009, and if we take 8,000 as the market level at the beginning of the first quarter of 2009, that would mean the stock market should have recovered to 10,000 by now, if it was going to match market performance in 1930.

But instead of recovering to 10,000, today the market is struggling just to catch up to where it was the day before Obama took office. And it still has several hundred points to go.

So if Rush is starving for material today, he can use that.

Because I'm righter than Rush.

[sndkzyaa]

For the first time ever on his show today, Rush Limbaugh failed to mention the stock market and Obama in the same sentence.
Posted by ontheleft at 5:48 PM : Apr 2, 2009

Then I'm righter than Rush.

Obama only has to make the stock market go up another 200 points to catch up to where it was the last trading of the Bush presidency.

Maybe Rush should start paying me for his material.

[sndkzyaa]

Why would you compare something, anything, to the situation on the ground in 1930? And who has created this goal? You? It doesn't make any sense. It's from left field. It's artificial.
Posted by ghostfighter-2009 at 6:53 PM : Apr 2, 2009

Because the last time we had a market crash comparable to 2008 was 1929. And the crash occurred in September/October both times.

And this is the year after the crash. So it could help to understand the current events by putting them in historical perspective.

You know, actual facts? Like those things the liberals are allergic to?

And name calling doesn't make you look any smarter.

[sndkzyaa]

Wow, the Dow closed almost at 8,000. Up more than 200 points today.

All it has to do is go up another 200 points, and it will be back to where it was

ON BUSH'S LAST DAY IN OFFICE.

If Obama tries real hard, maybe it will get back up to Bush territory this month.

But it will still be far short of April 1930, when it recovered to the equivalent of 10,000 in today's market.

But that doesn't stop the clueless liberals from gloating over the "recovery."

Liberals are allergic to facts.

[ontheleft]

For the first time ever on his show today, Rush Limbaugh failed to mention the stock market and Obama in the same sentence.

[tmittelstaed]

I bet you Rush lost 100 times what he made today over the last year. It's going to be a long, slow slog to get anything back that any investor lost during the last year who was invested in stocks. The only people who came out ahead where those who pulled out of stocks a year ago.

[skyk-2009]

Did you also "tutor" your nephew why he is going to be paying the rest of his life for the printing presses running wide open making money with not one thing to show for it but some new AIG millionaires for paybacks for contributions? Did you tell him with the new world order Obama is creating that if he does not work for the goverment he has no chance to get ahead? Make sure you tell him all the details and so he can decide for himself. If its not to late for him to make a choice.
Posted by specialty8 at 2:44 PM : Apr 2, 2009

Unfortunately for you ditto heads who have hoped so long and hard for the failure of this President and his desire to take us away from Supply Side Economics, it's going to be a LONG time in the desert for you. He is using tried and true methods and we already KNOW Demand Side Economics works.. It worked so well for our fathers they used it to build the Greatest Economy on the Planet. LOL Hey when you are betting against a guy with a 66% Approval you'd better be right or it will be a long time in the desert... just ask the idiots who followed Hoover! LOL

[skyk-2009]

Where in my post did I mention Democrats???????? "Liberal" is not exclusive to Democrats.
Posted by rickwar98 at 3:09 PM : Apr 2, 2009


Oh how right you are! Both Lincoln and Teddy R. disliked Conservatives greatly as well and weren't shy about saying so. LOL

[rickwar98]

Did you also "tutor" your nephew why he is going to be paying the rest of his life for the printing presses running wide open making money with not one thing to show for it but some new AIG millionaires for paybacks for contributions?

Posted by specialty8 at 2:59 PM : Apr 2, 2009

Care to reword that statement? Have you checked to see how much in interest has already been paid back in to the treasury? Thought so, no.

[rickwar98]

rickwar,
And just look at what the dems are giving us right now. President Pelosi, VP Reid, backdoor barney, tax crook Geithner, and a community organizer who only knows "print, baby print". Let the kids pay for it after we are dead and gone.
Posted by specialty8 at 2:11 PM : Apr 2, 2009

Where in my post did I mention Democrats???????? "Liberal" is not exclusive to Democrats.

[specialty8]

gostfighter,
Dow up and 5.7 million jobs gone. I would not tell Rush that yet. Sure Obama will take credit for the market until it plumets again, and Bush can be blamed for the jobs lost.

[specialty8]

cs4466,
Did you also "tutor" your nephew why he is going to be paying the rest of his life for the printing presses running wide open making money with not one thing to show for it but some new AIG millionaires for paybacks for contributions? Did you tell him with the new world order Obama is creating that if he does not work for the goverment he has no chance to get ahead? Make sure you tell him all the details and so he can decide for himself. If its not to late for him to make a choice.

[specialty8]

cs,
No problem, glad I could help.

[cs4466]

rickwar,
And just look at what the dems are giving us right now. President Pelosi, VP Reid, backdoor barney...
Posted by specialty8 at 2:11 PM : Apr 2, 2009

Thank you - I was tutoring a nephew of mine and was able to point out a bigot in his natural habitat. - an anonymous blog. He'll be able to recognize them from now on thanks to your fine example.

[specialty8]

rickwar,
And just look at what the dems are giving us right now. President Pelosi, VP Reid, backdoor barney, tax crook Geithner, and a community organizer who only knows "print, baby print". Let the kids pay for it after we are dead and gone.

[rickwar98]

MY FORMER NEIGHBOR USED TO LIVE IN A HALF MILLION DOLLAR HOME, DRIVE FANCY CARS AND HAVE THE BEST OF EVERYTHING. BUT HE WAS LIVING ON BORROWED MONEY - NOW HE LIVES IN A SMALL APARTMENT AND IS DIVORCED. THE LESSON IS - DO NOT ALWAYS BELIEVE WHAT YOU SEE AT FACE VALUE - IT MAY CRUMBLE RIGHT IN FRONT OF YOU.
Posted by TruePirate09 at 1:42 PM : Apr 2, 2009

Sounds like he lived beyond his means.

[rickwar98]

well first you have to have more than a 9th grade education and know how to spell.....so no sense you libs worrying about it because it won't happen.
Posted by jwind1 at 1:25 PM : Apr 2, 2009

Well libs would actually be Liberal. Definition:

Not limited to or by established, traditional, orthodox, or authoritarian attitudes, views, or dogmas; free from bigotry.

Favoring proposals for reform, open to new ideas for progress, and tolerant of the ideas and behavior of others; broad-minded.

Of, relating to, or based on the traditional arts and sciences of a college or university curriculum

Hmm sounds more of what America is all about, you know, little things like freedom.

Unlike Republicans, that can't accept any change which does not line their pockets, meet their pseudo-science ideas, their far right religious ideas, failed trickle down economics and constant whining about tax breaks for the wealthy, they also love to say NO! A lot. Constanly bring up the "Framers" as if they were actually there and are the only ones who think they know what was on there mind and other than Reagan have led us to finacial disaster more than once, invade countries.

Even better they present us with:

McCain
Palin
Jindal
Gingrich
Rush
Steele

as leadership.

And why do Republicans always need a label? Think about that last one, look through the posts, always a label.

[specialty8]

Veteran71,
Good one , but where would back door Barney, tax crook Geithner, and the community organizer fit in? Not hard to see any difference is it?

[rickwar98]

Question: How do I get a "Guaranteed Multi-Millions Compensation Regardless of my Performance" clause into my current Employment Contract?
Posted by lovegetpeace


Work for the right company, have credentials, write your own contract, have the board sign it. Done. Welcome to Business 101