Factors Sparking This Rally
For a second day in a row the Dow
and the S&P
moved higher.
Factors sparking the rally today
included news that the US economy showed signs of strength
for the first time in two weeks as claims for unemployment benefits fell the
most in two months; orders for durable goods declined less than expected; and new
home sales increased.
The Nasdaq ended the day on the down side. Treasury securities dropped after the government
reported the number of jobless claims decreased 24,000 last week, the biggest
drop since mid-July, and durable goods orders fell 0.6%. Economists had
expected August orders to decrease 3%, based on the median of 59
forecasts in a new home sales unexpectedly rose to a record rate of
996,000 last month. The Dec. 30-year bond
(
USZ2 |
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113’000. The Dec.10-year note
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225 up 005.
The Dow Jones Industrial Average
(
$INDU |
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7997.11 just below the 8,000 key level,
a 155.30 point rally.
Standard & Poor’s 500 Index
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rose higher gaining 15.28 to 839.65 a 1.82% gain.
Telecommunications chipmakers Qualcomm
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QCOM |
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Devices
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RFMD |
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(
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industry-wide mobile-phone sales may climb as much as 15% next year. Bed Bath
& Beyond
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retailer said second-quarter earnings surged 40%.
The Nasdaq Composite
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$COMPQ |
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in negative territory. Part of this was due to some profit-taking after the
strong morning and yesterday’s positive gains. The fall in the Semiconductor
Index
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$SOX.X |
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The SOX was one of the leading sectors yesterday but retreated today.
Some of the
sectors that moved the markets were Oil
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$XOI.X |
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service
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$OSX.X |
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invasion. Auto stocks were strong, thanks to some positive comments from
General Motors
(
GM |
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F |
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digits. Hotels were positive due to the positive earnings guidance from
Marriott
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PowerRating), Airlines
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$XAL.X |
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Grocery Retail, Railroad and Insurance.
The Homebuilders performed well today from the New Home Sales Report.
Sizeable gains were posted by: Hovnanian Enterprises
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Holdings
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MDC |
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RYL |
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and Centex
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CTX |
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PowerRating). The weaker sectors on the day were Gold
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$XAU.X |
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$BTK.X |
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Chemicals.
Nasdaq Market Breadth
Adv: 1755 UpVol: 451595136
Dec: 1491 DnVol: 996235005
Net: +264 Net: -544639869
NYSE Market Breadth
Adv: 2351 UpVol: 112995128
Dec: 911 DnVol: 46995970
Net: +1440 Net: +65999158
Earnings Reports: Look for reports from
SLR, MANU, CDT, COGN, and LBRT.