Dollar Bests the Euro, Stocks Erupt Higher, Lawmakers Seek To Salvage Bailout

Stocks erupted higher today after bargain hunters sprung into action on news that lawmakers are actively seeking to salvage or create a new financial bailout plan. The US Dollar walloped the Euro, climbing the most against it since its creation in 1999. A widening financial crisis in Europe led the Euro steeply lower against the US Dollar. However, credit markets remain under extreme pressure as banks hesitate to loan until clarity is reached for the future. The DJIA climbed back +485.31 to 10850.66, the Nasdaq jumped +98.60 to 2082.33 and the broad based S&P 500 added +58.35 to 1164.74.

Apple
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Climbed 9.25% or $9.69 to $114.92/share after Goldman Sachs stated that yesterdays sell off was overdone and they expect the company to hit $145.00 in the near future.

Dr. Pepper Snapple
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was chosen to replace Wrigleys in the S&P 500 causing shares to jump 8.53% or $2.07 to $26.33/share.

Hartford Financial Services
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failed to participate in the rally, falling 19.40% or $9.70 to $40.60/share on news that Fitch Ratings cut its credit outlook to negative.

Genworth Financial
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soared 65.00% or $3.25 to $8.25/share after stating it planned to spinoff its mortgage business.

Gold fell $25.40 to $869.00/oz as money came rushing back into equities. Oil climbed $4.89 to $101.26/barrel and the fear gauge VIX index fell 15.18% to 39.63 when optimism for the bail out plan returned to the marketplace.

Market Snapshot

Dow

+485.31 10850.66

NASDAQ

+98.60 2082.33

S&P 500

+58.35 1164.74

Economic
News

Existing Home Sales (Aug): Consensus 4.93M, Prior 5.00M

Crude Inventories (09/20): Consensus NA, Prior NA

Durable Orders (Aug): Consensus -1.3%, Prior 1.3%

Initial Claims (09/20): Consensus NA, Prior NA

New Home Sales (Aug): Consensus 518K, Prior 515K

Chain Deflator-Final (Q2): Consensus NA, Prior 1.2%

GDP-Final (Q2): Consensus 3.4%, Prior 3.3%

Mich Sentiment-Rev. (Sep): Consensus 70.9, Prior 73.1

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