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Market Recap: Bulls Start A Streak; Stocks Finish Higher


Bulls followed through. Financials and Tech continue their rally.

Stocks added to their gains for a second day. The Dow Industrials added +108 points or +0.88% to 12378, the S&P 500 added +13 points, or +1.01% to 1352, and the Nasdaq Composite finished +44 points, or +1.92% to 2360.

Investors were wary that the markets were oversold and poised to continue the rally. Financial stocks continued to move higher with the Philadelphia Bank Index (BKX) gaining +1.86% to $88.18. Top individual winners included Wells Fargo (WFC), adding +6.06% to $31.16, National City Corp. (NCC) +6.80% to $16.49, and Washington Mutual (WM) +5.28% to $16.95.

"Yesterday it was all about the financials and this morning we are seeing some slight followthrough there, " said Professor Tatro, "As long as it remains constructive it is fine and should be viewed as an opportunity when the stocks set up again."

The sector was not without its warnings, however. The performances of bond insurers Ambac (ABK) and MBIA (MBI) kept financials bulls on their toes. Both stocks plunged today as New York's regulators said a bailout of the companies would "take some time." Further, analyst doubted the agency's ability to manage the task. ABK shares fell -17% to $11.33, and MBI dropped -13% to $14.40. Read Professor Depew's Five Things You Need To Know and Minyanville Editor Andrew Jeffery's Will Bond Insurer Bailout Hold Water?

Recently beaten-up tech stocks continued to gain as well. Research In Motion (RIMM) added +9.14% to $96.05. Yahoo (YHOO) added +8.75% to $20.97. But Apple (AAPL) continued its decline after a report by Digitimes said the company lowered its forecasts of iPhone shipments from 2 mln to 1-1.2 million units for the second fiscal quarter. Shares of the company fell -1.40% to $137.00.

After the bell, Microsoft (MSFT) beat estimates with second quarter earnings coming in at $0.50 vs. $0.46 cons. Shares of the company rose +8% to $34.69. Read Professor Sean Udall's 18 Reasons Microsoft Won't Be Apple.

Commodities were stronger today. Crude oil moved higher even after U.S. inventories showed a build of 2297 k for the week. Crude settled +2.40 to 89.39. Gold surged +30.00 to 913.10, silver gained +0.371 to 16.273, and copper added +10.15 to 316.50. For more, read Professor Lewis' Will Fed's Ease Create Gold Bubble?

The dollar index finished lower -0.726 to 75.676.

Idea Flow

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: TXN, ADI, IACI, AAPL, CY, SBUX, ATVI, COST, FFIV, MON, GRA, ISRG, GETI

Some bearish trade or investment ideas: CAT, AG, TSO, MA, SPWR, IYR, COF, BZH, SPF, Crude, Gold, GLD

We'll see you bright and early in the morning! Have a great night!

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No positions in stocks mentioned.

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