US stocks rally smartly, led by consumer discretionary and materials stocks, as the dollar continue to fall and crude continues to rise.
DJIA jumps 96 (1%) to 10092, S&P 500 gains 10 (0.9%) to 1098, Nasdaq Comp jumps 20 (0.9%) to 2176. It’s another day where the dollar falls, equities rise, and crude rises, with that last now near $80/barrel.
Consumer stocks reported get lift from enthusiasm over Caterpillar’s expected earnings report, due tomorrow. Gannett, Hasbro and Eaton all post earnings that top views, although Hasbro shares lose ground. Apple reports after the bell.
October 19 – it’s a day that causes long-time investors to shutter every time they hear it.
Today marks the 22nd anniversary of the 1987 stock market crash that saw global markets collapse, culminating in the Dow plunging 500 points, or 22%, the index’s largest-ever daily percentage loss.
NYT’s Floyd Norris describes Black Monday as “a plunge that first terrified investors and then, after stocks recovered, persuaded them that stocks were always great investments.” The Dow actually recovered from the crash and finished 1987 in positive territory.
Twenty-two years later, Norris does some back-of-the-envelope calculations and figures an investor who bought and held the S&P 500 post-plunge would’ve earned a 6.8% annual rate after inflation. Of course, that investor would’ve earned 14.6% annually during the first 11 years and lost 0.5% in the latest 11 years.
Posted by Paul Vignaon October 19, 2009 Economy, Markets /
Some asset managers note that clients are becoming more interested in the idea of diversifying into international investments, Veronica Dagher and Shelly Banjo report in the latest installment of “What’s Brewing?” Grab a cup of coffee and get a little insight.
The Fed reported two favorable economic indicators on Friday that hint the recession’s end is nearing. But just because the downturn may be over doesn’t mean a return to prosperity is on the horizon.
Industrial production rose 0.7% in September from a month earlier and rose at a 5.2% annual rate during the third quarter. The rate which industries used their capacity also rose to 70.5% from 69.9% last month, and is now up for three straight months off its record low set in June. Prior to the turnaround, capacity utilization had decreased 17 out of the last 18 months.
Still, “that kind of growth is inconsistent with a jobless recovery,” says UC San Diego economics professor James Hamilton.
He cautions that “there are two separate feedback mechanisms operating.” Rapidly rising output should eventually cause companies to start hiring again. But high unemployment rates could lead to more foreclosures, resulting in spending and output to sputter, he notes.
“Which is it going to be? Nonfarm payroll employment is the key indicator to watch from here,” Hamilton says.
Premarket futures indicate US stocks are headed for a peppy open when regular trading gets underway in two hours.
Torrent of 3Q earnings reports this week — Apple and Texas Instruments report after today’s closing bell; DJIA components CAT, Coke and DuPont all report before tomorrow’s open.
Slower week for US economic data, with a little Fedspeak mixed in here and there. Home builders’ October sentiment index due at 1:00 p.m. Tomorrow we’ll see September PPI and housing starts; Friday brings September existing home sales.
US dollar index a little weaker again, and oil’s slightly softer too. S&P futures up 4.90; DJ futures up 30. Ten-year lower, yield at 3.44%.
J.P. Morgan reported some strong earnings today. But what this bloggers eye were some of the sub-numbers in the earnings report. The bank booked $1.8 billion in investment banking fees. But don’t be fooled – that wasn’t from big M&A advising. But $429 million was in advisory fees. Instead, that $1.3 billion + remaining fees […]
David Oreck, founder of a well-known maker of vacuums and air purifiers, says he’s upset his namesake company is in bankruptcy. He says Nashville, Tenn.-based Oreck Corp. was a perfectly profitable company when he sold his stake in it to a private equity firm in 2004. He blames the firm, New York-based American Securities Capital […]