MV Weather Report: Wind Change in Washington?
Rain or shine, we review the day's biggest stock stories.
This gave the market every reason to sell off today -- it most likely would have, if it weren't already so oversold -- but as Todd screamed from his office, "If they're not going lower, they're going higher."
That old Wall Street adage held true today as the S&P 500 ripped higher, closing the day up 2.36%.
The market gapped open on the strength in China, as the country hinted at a new stimulus package. Many pundits see China as the country that will lead the world out of this recession; it's an economic growth engine.
China's strength also took up the commodities and many of the commodity plays: Exxon Mobil (XOM), BHP Billiton (BHP), Caterpillar (CAT) and Freeport McMoran (FCX) to name a few. These were great stocks to own a year and a half ago - but during a global slowdown, I wouldn't touch them.
That's the reason why I think today's rally was a simple bear-market rally. Around 3:15, Reuters reported that the House Financial Services subcommittee is expected to hold a hearing on mark-to-market accounting on March 12. This helped the banks and General Electric recover, and the market shot higher before selling off in the last 15 minutes of trading.
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