Monster Financial Rally, Markets Jump, Oil Falls

  • July 16, 2008
  • David Goodboy

Stock indexes closed sharply higher on a monster rally in the financial sector and falling oil prices. Financials led by Wells Fargo experienced their biggest rally of all time leading the DJIA to soar +276.74 to 11239.28, the Nasdaq to climb +69.14 to 2284.85 and the S&P 500 to advance +30.45 to 1245.36.

Wells Fargo
(
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Delta Airlines
(
DAL |
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Chicago Bridge and Iron
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PowerRating) collapsed 15.97% or $5.81 to $30.58/share after analysts cut earning forecasts due to cost overruns and losing compliance with its lenders.

First Horizon National
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FHN |
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PowerRating) gained 27.16% or $1.60 to $7.49/share after being upgraded by Goldman.

Oil fell $6.56 to $138.62/barrel, the dollar dropped hard against the euro and the VIX broke 30 today ending the session up .21% at 28.54.

Market Snapshot

Dow

 +276.74 11239.28

NASDAQ

 +69.14 2284.85

S&P 500

 +30.45 1245.36

Economic
News

NY Empire State Index (Jul): Consensus -8.0, Consensus -8.7

Retail Sales (Jun): Consensus 0.4%, Prior 0.8%

Retail Sales ex-auto (Jun): Consensus 0.9%, Prior 0.8%

PPI (Jun): Consensus 1.3%, Prior 1.4%

Core PPI (Jun): Consensus 0.3%, Prior 0.2%

Business Inventories (May): Consensus 0.5%, Prior 0.5%

Core CPI (Jun): Consensus 0.2%, Prior 0.2%

CPI (Jun): Consensus 0.7%, Prior 0.6%

Net Foreign Purchases (May): Consensus $65.0B, Prior $115.1B

Capacity Utilization (Jun): Consensus 79.4%, Prior 79.4%

Industrial Production (Jun): Consensus 0.0%, Prior -0.2%

Crude Inventories (07/12): Consensus NA, Prior -5840K

FOMC Minutes (Jun 25)

Building Permits (Jun): Consensus 965K, Prior 969K

Housing Starts (Jun): Consensus 960K, Prior 975K

Initial Claims (07/12): Consensus 380K, Prior 346K

Philadelphia Fed (Jun): Consensus -15.0, Prior -17.1

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