Stocks Rally, IBM Optimistic, Oil Soars

The stock market rallied today on IBM’s optimistic 2009 forecast and a bounce in the financials, as the market decided to take a positive look at the Obama rescue plan. Oil soared in sympathy with equities as the correlation rung true today. The DJIA jumped +279.01 to 8228.10, the tech heavy Nasdaq advanced +66.21 to 1507.07 and the broad based market barometer S&P 500 climbed +35.02 to 840.24.

State Street
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– After a dire day yesterday, the world’s largest money manager for institutions rebounded 14.64% or $2.18 to $17.07/share upon rumors of it becoming a take over target.

Webster Financial
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– Dropped 6.93% or 0.45 cents to $6.04/share upon being cut to negative by Standard and Poors.

International Business Machines
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– Added 11.51% or $9.44 to $91.42/share as the computer behemoth gave optimistic forecasts for 2009.

Cash America
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– Fell along with others in the pawn shop sector after reducing earning forecasts. The company gave back 16.96% or $4.11 to $20.13/share.

Oil soared $2.71 to $44.24, gold slipped back 5.10 to $850.10 and the fear index VIX plummeted 18.06% to 46.42.

Market Snapshot

Dow

+279.01 8228.10

NASDAQ

+66.21 1507.07

S&P 500

+35.02 840.24

Economic
News

Building Permits (Dec): Consensus: 615K, Prior: 616K

Housing Starts (Dec): Consensus: 610K, Prior: 625K

Initial Claims (Jan 17): Consensus: 548K, Prior: 524K

Crude Inventories (Jan 16): Consensus:NA, Prior: 1.14M