Explosive day for the Dow

CNNMoney.,com ^ | August 6, 2007 | David Ellis

[Signalman]

NEW YORK (CNNMoney.com) -- The Dow industrials surged 286 points Monday, posting its biggest point gain of the year, helped by financial sector strength just ahead of the Federal Reserve's policy meeting.

The Dow Jones industrial average (up 262.24 to 13,444.15, Charts) soared 286 points, or 2.16 percent, based on early tallies, rebounding from a 281 point late session selloff Friday.

The broader S&P 500 (up 31.47 to 1,464.53, Charts) gained 2.4 percent while the tech-laden Nasdaq composite index (up 31.80 to 2,543.05, Charts) climbed 1.4 percent.

Treasury prices retreated, raising the benchmark yield on the 10-year note rising to 4.75 percent from 4.69 late Friday. Bond prices and yields move in opposite directions. Wake up time for the Fed?

Investors also kept a close eye on oil prices which were drastically lower. U.S. light crude for September delivery lost $3.42 to $72.06 a barrel. Just a week ago, oil prices reached a record trading high of $78.77.

The dollar gained against the euro and the yen.

COMEX gold for December fell $1.10 to $683.30 an ounce.

Here's what was moving before the close:

Stocks zigzagged for most of the session as credit market concerns, which had sent the 30-stock Dow industrials tumbling 280 points late last week, continued to trouble investors.

But the lack of any new woes and signs of strength in the financial sector, which helped fuel Friday's selloff, provided some positive momentum for stocks.

The KBW Bank Index (up $5.23 to $107.07, Charts) surged over 5 percent, while the AMEX Securities Broker/Dealer index (up $8.09 to $222.44, Charts) gained 3.7 percent.

Speculation that the Federal Reserve will offer some consolation to investors at its policy meeting Tuesday in light of the recent woes in the subprime, credit and housing markets, also helped prop up stock prices

[Signalman]

Markets come back. DUmmies, Democrats and other assorted Libs deeply saddened.

[Badeye]

‘Markets come back. DUmmies, Democrats and other assorted Libs deeply saddened.’

And assorted internet cranks that believe every downturn is the beginning of THE END!

LOL!

Only fools and Democrats bet against this economy, and this stockmarket.

[Tijeras_Slim]

COMEX gold for December fell $1.10 to $683.30 an ounce.

I'm doomed.

[theDentist]

Ahhhh! it’s the end of th-... never mind.

[Post-Neolithic]

"Speculation that the Federal Reserve will offer some consolation to investors at its policy meeting Tuesday in light of the recent woes in the subprime, credit and housing markets, also helped prop up stock prices"

And if they leave rates unchanged the market will sell off like nobody's business. Let's hope they do the right thing. Bernanke, in my opinion, has way too much power over the markets.

[chimera]

I’ve got to move some of my retirement funds into something else. Getting too old for these roller coaster rides, 300 down one day, 290 up the next.

[dfwgator]

[2 Kool 2 Be 4-Gotten]

Speculation that the Federal Reserve will offer some consolation to investors at its policy meeting Tuesday in light of the recent woes in the subprime, credit and housing markets, also helped prop up stock prices

---

Which means (to me at least) if the Fed sits on its hands tomorrow (as the WSJ counselled today in its lead editorial) we could see all these gains being given back and maybe even them some.

[VOA]

bump

[xcamel]

I heard the same Bravo Sierra from people when the dow hit 500 and was going up and down 5 points

[MattinNJ]

I love it. My 401K buys at the end of the month. It was like buying on sale at Macys. Dollar cost averaging, buy mostly S&P with a few bucks thrown at small cap and emerging markets, and leave it on auto-pilot.

[1rudeboy]

What are you, 100 years old? :)

[NeoCaveman]

Worst economy in.... oh never mind

[Snardius]

The market will fluctuate.

Some days it will fluc down...other days it will fluc up...

[Eric in the Ozarks]

Energy stocks, baby.

[gondramB]

It is worth remembering that it take 40% more dollars to buy Euro or other currencies than in 2003 - so dollar gains have to be take with a grain of salt.

A 50% stock market gain valued in dollars since 2003 is only about 10% gain in international currencies or 2.5% per year - decent but nothing to get excited about.

[chimera]

It’s just as I’ve gotten older my risk tolerance has diminished. Time was I’d leave everything on the table and let it ride. I don’t have that perspective now. If you’ve got the nerve, stick with it, because in the end the odds are you’ll come out okay. I’m at the point where I have to start thinking about exit timing.

[databoss]

Just wait until the wheels come off more mortgage companies and Cramer’s “14 million homeowners” have to reset crap loans...Bernanke would have lower rates to 4.25% tomorrow to hold back this freight train...start shortin’ or move to cash....

[Technocrat]

I sent my IRA check just in time to have it buy at the end of the day Friday. I’m feeling pretty smug now - let’s see if it lasts :)

[q_an_a]

Wait till everyone sees that gas is trading at $1.92, that will put another couple dollars in the fun fund every week.