New jump on Wall Street, after hours of good news
March 13, 2009 by
Filed under Business
According to preliminary calculations, the Dow Jones industrial average soared 239.66 points in order to make more than 600 units in its profit for the past three days. This is the biggest jump of the main reference in three days since last November.
The rise of 3.5% in the day to put in the Dow Jones 7170.06 points.
The Standard & Poor’s 500 degrees or 4.1 units rose 29.38% to 750.74 and the Nasdaq composite index jumped 54.46 points or 4%, to 1426.10.
The gains came after a special board said that Congress could recommend a relaxation of rules for troubled banks.
The turbulence in the banking industry has preoccupied the market since 2007, and the hope that the banks can finally get relief in the way they value their assets lack liquidity fostered a wave of buying.
“We could find that banks are not so bad or not bad, if these assets are identified in a different way,” said Doreen Mogavero, president of the brokerage Mogavero, Lee & Co.
Figures for retail sales, better than expected, also helped the titles, as well as the positive news of four companies comprising the Dow Jones: Bank of America Corp., General Electric Co., General Motors Corp. and Pfizer.
The CEO of Bank of America said the company has been profitable this year. Citigroup unleashed a wave of highs this week with similar statements.
In addition, General Electric had a less-than-expected reduction in their credit and reported that General Motors would not need a loan of 2,000 million dollars that the government had sought.
Pfizer, meanwhile, reported a successful test of a drug against cancer.
“I do not know how things have been recovered in a week,” said Scott Bleier, president of CreateCapital Advisors. “But there certainly is a better than two weeks ago.”
Nobody believes that they have finished low on Wall Street. The outlook for the economy is too uncertain and much of the highs this week was caused by technical factors. One such factor was the willingness of investors to buy securities to cover bets “in short, betting that some will fall.
But this week has been more positive in the stock market for months. The Dow Jones Wilshire 5000, which reflects the performance of almost all shares traded in the U.S., has jumped 11.2% during the last three sessions. This is a gain of 900,000 million dollars.
“There are a lot of money on the sidelines, and many people who have waited to enter the recovery,” said Mogavero. “I think probably people will want to put some money in the market.”
The Russell 2000 index, which measures the performance of smaller companies rose 23.82 points or 6.5%, to 390.12.
After a modest decline observed on Monday and three days of shopping, the Dow has risen 8.2% so far this week. The S & P 500 advanced 9.9% and the Nasdaq 10.2%.
The shares rose by more than exceeded that fell to 10-1 on the Stock Exchange of New York, where trading volume was 1810 million titles.
The prices of government bonds rose, with the performance certificate from the Treasury 10 years to 2.86% on the 2.91% seen on Wednesday.
The dollar strengthened against major currencies, rose gold and crude oil had an increase of $ 4.70, to 47.03 a barrel on the New York Mercantile Exchange.
In other international markets. The British FTSE 100 rose 0.5%, the German DAX rose 1.1% and French CAC-40 rose 0.8%. The Japanese Nikkei fell 2.4% and Hang Seng in Hong Kong rose 0.6%.
