Source: [url]http://abcnews.go.com/Business/stock-markets-recoup-weeks-losses/story?id=14310928[/url]
[quote]The three major stock market indices in the United States today recouped losses fromlast week's volatility, but investors are waiting to see if gains will continue during the week.
Stocks gained after relatively weak economic data in the past week and Standard & Poor's U.S. debt downgrade more than a week ago.
The Dow Jones Industrial Average closed at 11,482.90, up 213.88 points, or nearly 2 percent for the day.
The Dow was up 762.96 points, or 7.12 percent, in the three-day session. That is its largest three-day point gain since Nov. 25, 2008.
The S&P 500 was 1,204.49, up 2.18 percent, while the Nasdaq was 2,555.20, up 1.88 percent.
U.S. markets might have also reacted to the morning's news that Google will acquire Motorola Mobility. That large companies are confident enough to make such deals likely emboldened investors.
Good news for the markets came also came from Asia. Data indicated the Japanese economy is performing somewhat better than expected after the devastating earthquake earlier this year.
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Calvin Sullivan, managing director with investment bank Morgan Keegan, said today's trading reflected investors' increasing willingness for risk in the stock market as they retreated slightly from Treasuries.
[b]"I think investors just had a chance to reflect on the past week and prior week, that reality doesn't warrant quite as pessimistic of an outlook on the economy," Sullivan said.[/b]
Mixed economic data might have led to last week's roller-coaster ride in trading. The U.S. government reported Aug 5. there were 117,000 jobs added in July, lowering the unemployment rate to 9.1 percent from 9.2 percent. Then on late Friday evening, Standard & Poor's announced it had downgraded U.S. sovereign debt.
Hugh Johnson, chairman of Hugh Johnson Advisors LLC, said that economic data on industrial production and housing out later this week, will indicate whether the markets can sustain today's performance.
Johnson added that the European debt crisis continues to be an issue, and "from time to time the markets will worry if there is another assault on the bonds of European countries."
Doug Roberts, chief investment strategist for ChannelCapitalResearch.com and author of Follow the Fed to Investment Success, said today's gains were driven in part by investors' hopes that the Federal Reserve might intervene with additional stimulus.
"After the credit downgrade drop, we saw a rally into Treasuries and the Fed's statement with hope for the future," Roberts said.
[b]The Federal Reserve released a statement Aug. 9 that it will keep the federal funds rate low, possibly at 0 to 1/4 percent, at least through mid-2013.[/b]
"Initially, there was some question whether Bernanke's statement was dovish or hawkish. But people are hearing dovish and hope it will lead to some form of QE3," Roberts said, referring to the Federal Reserve's QE1 and QE2 "quantitative easing" monetary stimulus. [/quote]
Well, it's some good news at least.
I say [B]HA[/B] to the doomsayers.
That is all.
[i]Michelle Bachmann.[/i]
Do you still feel safe?
Woo, riots delayed until further notice
Ok guys, we can pretend the economy is going to get fixed for another day!
[QUOTE=Sobotnik;31754499]Ok guys, we can pretend the economy is going to get fixed for another day![/QUOTE]
don't be a dick
[QUOTE=Desolategrunt;31755144]don't be a dick[/QUOTE]
The economy is still doing badly.
The best part about all of this is that us Canadians get to come down and buy stuff for ridiculously cheap. I hope the economy never recovers, I love only paying 20 dollars for stuff I'd be paying 50-60 for in Canada.
[QUOTE=Risonhighmer;31755452]The best part about all of this is that us Canadians get to come down and buy stuff for ridiculously cheap. I hope the economy never recovers, I love only paying 20 dollars for stuff I'd be paying 50-60 for in Canada.[/QUOTE]
Some of us actually go across the border into Washington (sometimes waiting for hours) just to get gas because it costs like half as much.
[QUOTE=Dark-Energy;31756878]Some of us actually go across the border into Washington (sometimes waiting for hours) just to get gas because it costs like half as much.[/QUOTE]
Yeah, I'm down in washington now visiting my Mom. The lineup to get back into Canada went all the way to the highway, and I have no doubt that the majority of people in that line were Canadians going down to cash in on the state's shitty economy.
Ha I thought that the economy wasn't going to blow up like the idiots thought it would. Really people think about, it it is nothing but the short term investors that went and sold stock like crazy because they really did not understand the system all that well. Just because the U.S. credit rating went downhill or that the senate held off on voting to raise the debt ceiling doesn't mean that the world was going to end. Only when it does should one worry, though not subjectively though.
The Dow Jones is still lower today than it was at the beginning of the year.
good to see its at least getting back what its losing, though more stability would be nice
Such is the life in the Zon- I mean Wall Street.
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