Chrysler’s Italian Savior, Fed Optimistic, DreamWorks Explodes Higher

• April 29, 2009
• Dave Goodboy

Stocks surged higher today after the Fed left interest rates unchanged and provided optimistic commentary on the state of the economy. Further positive high level rumors of Chrysler merging with Italian auto giant Fiat after reorganization provided additional fodder for the skyward move. Outstanding surprising earnings from a multitude of companies, such as film monster DreamWorks, powered the indexes higher throughout the day. The DJIA ended the day up +168.78 to 8,185.73, the Nasdaq added +38.13 to 1711.94 and the broad based S&P 500 climbed +18.48 to 873.64.

DreamWorks
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Goodyear Tire
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Bank of America
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Massey Energy
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Gold added $6.90 to $900.50, Oil advanced $1.05 to $50.89 and the VIX fear index dropped 4.93% to 36.08today as optimism entered the market.

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Market Snapshot

Dow +168.78 8,185.73 NASDAQ +38.13 1,711.94 S&P 500 +18.48 873.64

Economic News

Consumer Confidence (Apr): Consensus: 28.8, Prior: 26.0 S&P/CaseShiller Home Price Index (Feb): Consensus: -18.8%, Prior: -18.97% GDP-Adv. (Q1): Consensus: -4.9%, Prior: -6.3% Chain Deflator-Adv. (Q1): Consensus: 1.7%, Prior: 0.5% Crude Inventories (04/24): Consensus: NA, Prior: +3857K FOMC Rate Decision: Consensus: NA, Prior: 0.00%-0.25% Initial Claims (04/25): Consensus: NA, Prior: 640K Personal Income (Mar): Consensus: -0.2%, Prior: -0.2% Personal Spending (Mar): Consensus: -0.1%, Prior: -0.2% Employment Cost Index (Q1): Consensus: 0.5%, Prior: 0.5% Chicago PMI (Apr): Consensus: 34.0, Prior: 31.4 Mich Sentiment-Rev (Apr): Consensus: 61.5, Prior: 61.9 Factory Orders (Mar): Consensus: -0.7%, Prior: 1.8% ISM Index (Apr): Consensus: 38.0, Prior: 36.3 Auto Sales (Apr): Consensus: NA, Prior: 3.3M Truck Sales (Apr): Consensus: NA, Prior: 3.8M