Wall St. extends gains on euro-fund optimism
Traders work on the floor of the New York Stock Exchange September 28, 2011.
Credit: Reuters/Brendan McDermid
NEW YORK |
NEW YORK (Reuters) - U.S. stocks rose on Wednesday as Europe's progress toward bolstering its financial rescue fund brought more battle-weary investors back into the market.
Momentum buying was partly in play, analysts said, as investors tried to latch on, or catch up with, what they hoped was a lasting rally, which has been a rare trend this year.
The S&P 500 is up about 12 percent from its intraday low hit last week on Tuesday and had its largest seven-day rally since March 2009. The Dow briefly bounced back into positive territory for the year.
"A lot of the people who have cash and who have been afraid of some of these big, macro risks are thinking: Maybe we should get back in because this has been a rough year, and it would be really rough if we missed a big fourth quarter," said Hank Smith, chief investment officer of Haverford Trust Co. in Philadelphia.
Bank shares led the advance again, with the KBW Bank Index .BKX up 3.3 percent. Citigroup (C.N) gained 5 percent to $29.22.
The Dow Jones Transportation Average .DJT rose 1.3 percent.
Worries that the euro-zone debt crisis could tip the global economy into another recession have pressured stocks in recent months.
Slovak lawmakers struck a deal to ratify more powers for the euro zone's rescue fund, known as the EFSF, effectively ending a crisis that had threatened the euro's survival and has weighed on stocks and other risky assets for months.
Slovakia is the last country in the 17-member currency zone left to approve the revamped EFSF.
The Dow Jones industrial average .DJI rose 102.55 points, or 0.90 percent, to end at 11,518.85. The Standard & Poor's 500 Index .SPX gained 11.71 points, or 0.98 percent, to 1,207.25. The Nasdaq Composite Index .IXIC shot up 21.70 points, or 0.84 percent, to close at 2,604.73.
The S&P 500 traded above 1,200 for the first time in three weeks, taking the benchmark near the upper end of a range it has been stuck at since early August.
A sustained break above resistance at 1,215 would be seen as a bullish signal, analysts said.
On the earnings front, PepsiCo Inc (PEP.N) rose 2.9 percent to $62.70 after it reported slightly better-than-expected earnings and affirmed its full-year target. But Alcoa Inc (AA.N) fell 2.4 percent to $10.05 and ranked as one of the biggest drags on the Dow, a day after reporting results.
While Alcoa's results marked the start of the third-quarter earnings period, they often don't reflect what the quarter will look like, analysts said.
"We're going to be looking very closely at the earnings from industrials and materials because the two sectors really had bear markets in the third quarter," Smith said.
The S&P materials index .GSPM fell 25 percent in the third quarter.
About 8.5 billion shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, above the year's daily average so far of about 8.0 billion.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of 4 to 1, while on the Nasdaq, advancers beat decliners by about 3 to 1.
(Reporting by Caroline Valetkevitch; Additional reporting by Rodrigo Campos; Editing by Jan Paschal)
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US blue chip stocks trading at bargain basement prices
Palma De Mallorca, SPAIN (MMD Newswire) October 11, 2011 — With US stocks entering a near bear market It takes a brave man to be bullish on Wall Street right now but self-made multi-millionaire trader and investor Vince Stanzione is just that and is calling for the Dow Jones to make a new high by the first half of 2013. He sees great opportunities for those brave enough to invest now.
Before observers dismiss his call as Wall Street propaganda, Stanzione asserts an impeccable independent track record. Better known for his bearish calls both in stocks and currencies, he is also willing to take contra bets on stocks that are often dumped by the big Wall Street brokers. He thinks back to tobacco and foods company Philip Morris in 2000, which was hated by the Street and went on to become Kraft, Altria and Philip Morris International, returning over 500%, including steady dividends in the following decade.
His market model, which tracks seasonality, dividend yields and sentiment, points to higher prices in the next few months and ultimately an all-time high for the Dow Jones Industrial Average around the middle of 2013 reaching 14250.
“I don’t expect many to agree with me; in fact, if too many do I would be worried. History has shown the best time to invest is when everyone hates stocks,” states Stanzione. “Excuse my language, but when everyone vomits and never wants to see another stock, I am the guy cleaning up the mess. Right now that’s what I see – everyone is bearish and underexposed to stocks.”
Fund managers are bearish, politicians are panicking and the retail investors have given up, yet US companies are in great shape. Stanzione’s model calls for a low to be hit mid-October and for stocks to move sharply higher into January with many scrambling to get back into stocks. He looks for the Dow Jones to be trading at 12,000 within the first few days of 2012.
Stanzione has had great success in investing in tobacco, beverages, gaming and fast food stocks over the last decade as well as being an early investor in commodities.
US Offers Great Opportunities
Stanzione says that many chasing emerging markets would be better investing closer to home and getting international exposure via well-known household brands. Stanzione is not bullish on everything, has stayed away from banks and has short trades on solar company stocks, which will profit from falling prices. He is also positive on agricultural stocks such as fertilizer companies and farm equipment makers.
About Vince Stanzione
Vince Stanzione is a self-made multi-millionaire based in Monaco and Mallorca, Spain and trades his own funds mainly in currencies, stocks and commodities.
As well as trading he also teaches a small number of students and produced the bestselling course on Financial Spread Betting. He is also the author of “How to Stop Existing & Start Living” and recently launched a new US home-study course, “Maximum Trading Profits in Minimum Time,” to teach investors how to profit from rising and falling markets.
To learn more, go to http://www.fintrader.net.
And Honduras is going to buy a new bus and fill it with chickens. Man this country is falling apart. When the bankers are taking their cues from Borat…. it’s time to step on the bankers.
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