Dow Jumps Over The Moon

March 27, 2001
Daniel Beighley

A jump in consumer confidence lowered hopes for an inter-meeting Fed rate
cut, but stocks shrugged off the news and staged a broad-based rally into the
close. The prevailing view was that perhaps the economy will coast through a
brief downturn and avoid a deep and painful recession.Â

Financials, cyclicals and telecom led the charge which took the Dow up 2.7%
and the S&P 500 up 2.6%. Tech stocks joined in the parade as well as the
Nasdaq booked a 2.8% gain.

From Monday’s totals, volume spiked up a healthy 18% on the NYSE and 14% on
the Nasdaq as 1.31 billion shares traded on the NYSE and 1.93 billion traded on
the Nasdaq.

Consumer confidence for March came in at 117 which was significantly higher
than the 105 that analysts expected, and in other economic news, the February
Durable Goods Orders fell 0.2% which was lower than the 0.5% increase analysts
had expected.

“As we approach the end of the first quarter, a number of
market technicals with regards to valuation, investor psychology, and money
supply figures suggest that the market is close to a bottom, and I suspect there
could still be some choppiness in both the Dow and the Nasdaq through the April
15 tax deadline,” said Scott Cummings, General Partner, Agile
Asset Management.

“But consider any downdrafts as buying opportunities with a
market rally this spring. It is a bold call as we have heard numerous market strategists say buy,
buy, buy since late January, and that has been a painful downdraft since late
January. But I think we stand a chance here of a market rally in the
spring,” he added.

Looking ahead, the fourth quarter GDP report will be released on Thursday,
and analysts expect a 1.1% rate.

Dow Jumps Over The Moon

BUY THE FEAR, SELL THE GREED

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