Posted on 08/06/2007 1:20:30 PM PDT by 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
(Excerpt) Read more at money.cnn.com ...
“Only fools and Democrats bet against this economy, and this stockmarket.”
I’m in for the long haul. I figure I have at least 10 years before retirement, maybe 15. Anyway, you have to look at percentages. In 1980, a 200 point drop was huge. Today, a 200 point rise or drop is significant, but not huge. I’m riding the roller coaster. Not going to seek safer postion until August ‘08, just before Queen Hillary is coronated.
Its been a long time since we had high inflation, and depreciating our dollar further just so the realtors/construction industry can be bailed at would not be a good idea.
Don’t watch the day to day, watch the trend.
Oil was down and Citibank was up 2.63 or more than 5%. If the banks have bottomed, the market will take back 14k soon.
Other than cancelling that European vaction, the Euro exchange rate means less than nothing to me.
It’s Bush’s fault!
According to the Fed funds futures there is an 88% chance they'll leave rates alone, so count on it. Bernanke is an arrogant SOB who is trying to establish his credentials as such.
Credit worries aren't going away. Today's move was a dead cat bounce.
Good point. But can anyone explain why the Euro has risen so much? I, for one, do not see fundamental economic strength in and around Europe ...
It’s Armegeddon!~~!
Sounds like a plan.
Keep chanting:
“I am an investor, I am NOT a trader”
“I am an investor, I am NOT a trader”
“I am an investor, I am NOT a trader”
Its really not that bad.
You have to expect market corrections from time to time.
What a misleading headline. The word "explosive" has such a negative connotation. I guess CNN had a hard time coming up with a positive description for the biggest one day gain of the year.
The Euro is also falling in terms of hard assets. The dollar is just falling faster.
I was joking.
We’re all gonna die!
Again, I kid.
So I don’t have to stand out on the street corner and sell pencils?
Ping.
Thank goodness! The value of our retirement account went down 20k in the last couple of weeks. Easy come, easy go. Best to have a long-term view!
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