Market Recap: S&P Helps Turnaround; Stocks Finish Higher
Markets recovered nicely to ward off a potentially ugly day.
Stocks opened to the downside, due in part to continued credit jitters from Carlyle Capital, a division of Carlyle Group. The bond fund said talks with its creditors had failed after the fund missed payments and that it expected its creditors to seize all of its assets. Sentiment in the financial sector didn't help with continued selling pressure on Bear Stearns (BSC). Read Minyanville Editor Andrew Jeffery's column Leverage Licks Carlyle.
Economic data also weighed on stocks. The Commerce Department said sales fell -0.6% led by declines in restaurants and auto dealers. Excluding autos, sales fell -0.2%. For more check out Prof. Depew's What Is It and Should I Care?
But news of Standard & Poor's saying it saw the end for writedowns for banks hit the tape and a reversal was underway. The S&P 500 managed to rally 35 handles off its lows with seven stocks rising for every three that fell on the New York Stock Exchange. In the financial sector gainers included Merrill Lynch (MER) +2.98% to $46.26; Lehman Brothers (LEH) +2.3% to $45.99 and Capital One (COF) +4% to $49.54. Although Bear Stearns (BSC) recovered off its lows, the stock still closed -7.5% to $57.00.
Housing stocks surged on the day. Gainers were led by Meritage Homes (MTH) and Beazer Homes (BZH). Both stocks gained +13%. Pulte Homes (PHM) added +7.4% to $12.67 and Hovnanian (HOV) finished +11% to $10.07. For more context, check out Professor Depew's Five Things You Need To Know.
In tech most of the high beta stocks finished higher. Apple (AAPL) gained +1.65% to $128.10; Google (GOOG) closed +0.41% to $441.51. and Research In Motion (RIMM) added +4.03% to $105.35. Baidu (BIDU) was a laggard closing -1.99% to $268.00. Read Toddo's Random Thoughts.
In commodities, crude oil gained +0.21 to 110.13. Gold touched $1000 before settling +16.30 to 996.80. Silver finished +0.529 to 20.440 and copper fell -1.15 to 384.00.
Read Professor Lewis' Minyan Mailbag: Gold Rush!
The dollar index fell -0.461 to 71.941. See Minyanville Editor Andrew Jeffery's column Glasses Clink, Minyans Think.
For more Buzz insight, check out Minyanville's Buzz Bits.
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: SPX, QQQQ, BIDU, AAPL, GOOG, MA, BSC, LNN, RIMM, X, AKS, STLD, NUE, YEN, XLF
Some bearish trade or investment ideas: IBB, AMGN, SLB
Almost Friday! Have a great night!
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