Short Crushing Rally, Fed Rate Neutral, Oil Drops Hard

  • August 5, 2008
  • David Goodboy

The stock market roared to life today in a short crushing rally on neutral
interest rate Fed stance and plummeting oil prices. The DJIA exploded up +331.37
to 11615.77, the Nasdaq soared +64.27 to 2349.83
and the broad based S&P 500 advanced +35.56
to 1284.57.

Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating) climbed 7.67% or $1.15 to $16.14/share
on dropping chicken feed costs.

American International Group
(
AIG |
Quote |
Chart |
News |
PowerRating) led the DJIA higher
climbing 11.95% or $3.19 to $29.88/share after being upgraded to a “buy”
by UBS due to being well suited to handle Credit Default Swap losses.

Archer Daniels Midland
(
ADM |
Quote |
Chart |
News |
PowerRating) fell 5.58% or $1.53 to $25.87,
as the Grain processor stated 61% 4th quarter profit losses.

Castle Point
(
CPHL |
Quote |
Chart |
News |
PowerRating) jumped 28.60% or $2.54 to $11.42
after Tower Group announced buy out plans.

Oil fell $2.89 to $118.52/barrel, gold collapsed $26.70 to $881.20 and the
VIX gave back 10.26% to 21.08.

Market Snapshot

Dow

 +331.37 11615.77

NASDAQ

 +64.27 2349.83

S&P 500

 +35.56 1284.57

Economic
News

Consumer Confidence (Jul): Consensus 50.0, Prior 50.4

ADP Employment (Jul): Consensus -60K, Prior -79K

Crude Inventories (07/26): Consensus NA, Prior -1558K

Chain Deflater (Q2): Consensus 2.3%, Prior 2.7%

Employment Cost Index (Q2): Consensus 0.7%, Prior 0.7%

GDP-Adv. (Q2): Consensus 2.3%, Prior 1.0%

Initial Claims (07/26): Consensus 395K, Prior 406K

Chicago PM (Q2): Consensus 49.0, Prior 49.6

Auto Sales (Jul): Consensus NA, Prior 4.9M

Truck Sales (Jul): Consensus NA, Prior 5.0M

Average Workweek (Jul): Consensus 33.7, Prior 33.7

Hourly Earnings (Jul): Consensus 0.3%, Prior 0.3%

Nonfarm Payrolls (Jul): Consensus -75K, Prior -62K

Unemployment Rate (Jul): Consensus 5.6%, Prior 5.5%

Construction Spending (Jun): Consensus -0.3%, Prior -0.4%

ISM Index (Jul): Consensus 49.2, Prior 50.2

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