They are sparked by big movements in the futures markets followed by heavy buying in key selective stocks that drive up the indexes.This struck me as an odd thing for the writer to assert. Yesterday's huge rally in particular was really, really broad. It wasn't just the indexes.
And pretty much everyone in the world expected a pullback today, and we only got it in the DOW.
Methinks this guy is writing what Daschle hopes is reality, instead of what is happening.
ChevronTexaco Corp. reported an 81% decline in second-quarter earnings, reflecting flagging profit margins in its refining business and $631 million in write-downs related to its investment in cash-strapped energy marketer Dynegy Inc.
But San Francisco-based ChevronTexaco, the second-largest U.S. oil company, postponed more bad news by keeping its Dynegy write-downs to a minimum. ChevronTexaco warned that it could be forced to write off its remaining $2 billion investment in Dynegy in the third quarter. Dynegy's stock price has been pummeled by liquidity concerns after it disclosed that this year's cash flow will be lower than expected.
BP PLC signaled a brighter future despite reporting a 44% drop in second-quarter profit on lower oil prices and weaker refining margins.
Reflecting its improving outlook, BP raised its dividend by 4.3% and reduced its net debt during the quarter. The company also said its crude-oil and natural-gas output is accelerating.
Believe it or not, I know a couple of people doing this. They figure as long as they don't acknowledge it, it didn't happen. Severe denial going on.
Anyway, tomorrow makes one week of the "happy days" rally. Let's keep it going for another day or two.
Richard W.