Minyanville's Market Recap: Bulls Take Charge In Slow Day; Markets Rally
The bulls took charge in a slow day and Bernanke reiterated that he's got Hoofy's back!
Stocks rallied strong today after yesterday's sell-off. The Dow gained 247 points to finish at 13289, Nasdaq gained 62 points to finish at 2563, and the S&P gained 31 points to close at 1463.
Markets got a strong lift from the tech sector led by Apple (AAPL) on rumors that the company was expecting to launch a new wave of iPod products. Shares of the company soared 5.5% to close at 133.92. Other notables in the tech sector included Intel (INTC) up 1%, Verizon (VZ) 0.7%, and AT&T (T) up 1.4%. Professor Udall mentioned a lot of these companies in his article 21 Bullish Prediction For Tech.
Adding to the bullish sentiment were statements by Fed Chairman Ben Bernanke made in a letter to Senator Charles Schumer. The letter stated the Fed was monitoring the markets closely and ready to act if needed. In addition, Chairman Bernanke also said that there was no need to lift caps for the government sponsored entities' (GSE) portfolios of Fannie Mae (FNM) and Freddie Mac (FRE) to accommodate new borrowers. Actions of central banks around the world have been covered in-depth at the 'ville. Have a look at our Fed Section on our Economy Page to access these articles.
As for economic data, a bullish crude inventories report sent oil prices soaring. The weekly energy inventory data came in lower than expected at -3486 k vs. -600 k resulting in a gain in crude oil futures of over 2%.
The news was a little light today, but the markets could quickly change as GDP and initial claims is set to be released at 8:30 AM EST tomorrow. Click here for the full trading radar. Also have a look at Toddo's Random Thoughts: Recess or Recession and Professor Cooper's Blame Game Ignores Historical Pattern for more insight into the current state of the markets.
Below is a recap of some of the idea flow that appeared on today's Buzz and Banter. Please note that stocks may appear on both bullish and bearish categories due to long and short term trades by our many Minyanville professors. Also, for more in-depth summaries, click on our Buzz Bits.
Some bullish trade or investment ideas: STX, IOM, ISRG, SYNA, RTI, ILMN, ANAD, PCU, NMX, NYX, KMX, GPI
Some bearish trade or investment ideas: NOV, GPOR, BSC, GS, LEH, MS, MER, MA, CFC, MAN
Be sure to check out Minyanville's Kevin Depew as he will be appearing on the Nightly Business Report tonight on PBS with Paul Kangas. Goodnight from Minyanville!
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