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Minyanville's Market Recap: Bulls Power Ahead, Markets End Higher

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Gold hits $93. UBS warns of losses and Merrill kicks out its CEO. Bulls still power ahead.

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U.S. stocks rose for another day even after surging commodities prices and continued turmoil in the financial sector. The Dow Industrials rose +0.46% to 13870, the Nasdaq composite rose +0.40% to 2203, and the S&P 500 added +0.37% to 1540.

Investors awoke to cries from within the financial sector. UBS (UBS) confirmed its third quarter losses to be between $515.5-687.3 mln, in-line with reports the company released earlier this month. Furthermore, the bank warned investors of further write-downs due to mortgage-related assets still held on the bank's books. UBS, however, did attempt to relieve investors' concern, stating the quarter was off to a positive start. UBS closed down -1.08% to $53.25.

In another casualty resulting from this summer's credit crunch, Merrill Lynch (MER) forced out its CEO Stan O'Neal. Mr. O'Neal had been on the bubble ever since the company posted $8.4 bln in write-downs with $7.9 due to mortgage-related securities. The breaking point seemed to be when Mr. O'Neal sought a merger last week without approval from the board. With Mr. O'Neal's ousting, investors seemed to be pleased as MER closed up +2.01%. Other financials performed similarly. Goldman Sachs (GS) hit a new all-time high closing +3.34% to 243.81. Lehman Brothers (LEH) added +3.87% to 62.76. But Bear Stearns (BSC) was a laggard losing -1.44% to 114.54. . For more, read Toddo's Monday Morning Quarterback.

In commodities action, crude oil made headlines again, breaking above the $93 per barrel level amid tensions in the middle east, production halts, and the falling dollar. Oil settled in +$1.67 at $93.53. Professor Krueger recently mentioned Dryships (DRYS) in The Benefits of Higher Prices. DRYS surged +6.28% to $130.97. Diana Shipping (DSX) also touched a new high adding +6.41% to $44.82 along with Eagle Bulk Shipping (EGLE), +3.82% to $35.29. However, Toddo continued to note the lagging performances of the drillers in respect to the movement in crude. For more, read his Random Thoughts.

In other parts, gold finished higher +0.66% to 789.10. Silver added +1.05% to 14.43, and Copper lost -0.47% to $351.30. With the surge in commodities, Professor Limantour noted on the Buzz the slew of ETF's in the commodities space. Click on Minyanville's Buzz Bits for more summaries on the Buzz & Banter.

In earnings news, Kellogg (K) reported third quarter earnings of $0.76 versus analyst estimates of $0.73. Revenues came in at $3 bln vs. $2.99 cons.

Humana (HUM) reported $1.53 EPS versus analyst estimates of $1.48. Revenues were $6.32 bln versus $6.22 bln cons.

Office Depot (ODP) stock plunged -17% after the company delayed its third-quarter earnings to review accounting for supplier payments. Read Professor Macke's Finding Value in Office Depot.

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: PCU, ARTW, WFR, ASTI, VMW, SPWR, GRMN, DELL, GPS, MSFT, NVLS, SCHW

Some bearish trade or investment ideas: SPX, DXY, AAPL, SLE, GDX, BKUNA, BBX

Monday isn't so bad, is it? Have a great night and see you tomorrow!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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