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| Home Front Economy |
| Dow jumps nearly 900 |
| 2008-10-28 |
| According to preliminary calculations, the Dow rose 889.35, or 10.88 percent, to 9,065.12. That was its second-largest point gain, coming after the 936 points the Dow jumped on Oct. 13. The Dow was up 456 points at 3 p.m. and rose as much as 906.31 before edging back. The gains in the 30 blue chip stocks were stunning — Alcoa Inc. was up 19.25 percent, while Verizon Communications Inc. rose 14.63 percent. Even oil stocks shot higher, withstanding another drop in the price of crude — Exxon Mobil Corp. and Chevron Corp. each rose more than 13 percent. Broader stock indicators also surged. The Standard & Poor's 500 index rose 91.59, or 10.79 percent, to 940.51, and the Nasdaq composite index rose 143.57, or 9.53 percent, to 1,649.47. The Russell 2000 index of smaller companies rose 34.15, or 7.62 percent, to 482.55. Advancing issues outnumbered decliners by more than 4 to 1 on the New York Stock Exchange, where volume came to a moderate 1.72 billion shares compared with 1.34 billion shares traded Monday. "I guess we're just coming out of this oversold situation. I think you've got a lot of players on the sidelines," said Dan Demming, trader at Stutland Equities in Chicago. "There's just no one standing in the way right now." He contends investors are also anticipating an interest rate cut. The Fed is expected to cut its target fed funds rate by half a point to 1 percent. Bond prices were mixed as some investors looked for the safety of government debt. The yield on the three-month Treasury bill, regarded as the safest investment around and an indicator of investor sentiment, fell to 0.76 percent from 0.77 percent Monday. The lower yield indicates an increase in demand. Meanwhile, the yield on the benchmark 10-year Treasury note rose to 3.86 percent from 3.69 percent late Monday. The dollar was mixed against other major currencies, while gold prices fell. Light, sweet crude settled down 49 cents to settle at $62.73 a barrel on the New York Mercantile Exchange. Investors worldwide snapped up stocks after posting huge declines Monday on economic worries. Japan's Nikkei stock average jumped 6.41 percent and Hong Kong's Hang Seng index surged 14.4 percent — its biggest gain in 11 years — a day after plunging more than 12 percent. Britain's FTSE 100 rose 1.92 percent, Germany's DAX index jumped 11.3 percent, and France's CAC-40 rose 1.55 percent. |
| Posted by:tu3031 |
| #5 Everybody is buying the entire market because recovery begins here. |
| Posted by: Mike N. 2008-10-28 22:40 |
| #4 I sure hope Paulson isn't using any of the handout money to buy stock. I've noticed that everything - even the nominally bankrupt companies - is up. Somebody is buying the entire market. |
| Posted by: Zhang Fei 2008-10-28 22:38 |
| #3 Yep, it's moe to do with th strength of the dollar than the economy. To quote a Mr Deninger, "the US is fucked, but everywhere else is fucked worse." |
| Posted by: Bright Pebbles 2008-10-28 21:14 |
| #2 Things were so good today that a share of the NYT now costs you more than $10. The regular kind, that is, not the special kind Pinchy owns. |
| Posted by: Matt 2008-10-28 20:16 |
| #1 Nymex crude oil down to $62.73 at the close. |
| Posted by: Steve White 2008-10-28 18:18 |