Wachovia Rallies Despite Huge Loss, Stocks Jump, Oil Falls Hard

  • July 22, 2008
  • David Goodboy

Falling oil prices and extreme cost cutting by Wachovia Bank after posting a huge loss sparked a rally in the financial sector and across the board today. The DJIA rallied +135.16 to 11602.50, the Nasdaq climbed +23.93 to 2303.46 and the S&P 500 shot ahead by +17.00 to 1277.00.

Wachovia
(
WB |
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PowerRating) surged ahead by 27.47% to $3.62 to $16.80/share after announcing extreme cost cutting measures and plans to jettison the wholesale mortgage business, despite massive losses.

Dominoes Pizza
(
DPZ |
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News |
PowerRating) experienced its largest gain in a year, climbing 22.52% or $2.34 to $12.73 after beating analysts quarterly sales projections.

Caterpillar
(
CAT |
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PowerRating) jumped 2.42% or $1.77 to $75.00/share after strong Middle Eastern demand caused second quarter earnings to exceed analysts’ estimates.

Apple
(
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PowerRating) fell 2.44% or $4.06 to $162.23/share after not meeting analysts estimates for fourth quarter profit. This is the steepest drop since January 23, 2008.Oil continued its downward slide today losing $3.09 to $127.95/barrel. Gold was hit hard dropping $15.20 to $948.50/oz and the VIX gave back another 8.11% to 21.28.

Market Snapshot

Dow

 -29.23 11467.34

NASDAQ

 -3.25 2279.53

S&P 500

 -0.68 1260.00

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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