Thursday, November 27, 2008

Market Climbs on Tech, Energy; Happy Thanksgiving

Market Climbs on Tech, Energy

The market climbed on Wednesday as investors snapped up tech stocks trading near their cheapest levels in five years, and renewed hopes of a General Motors bailout helped investors.

The Nasdaq rose 4.6%, led by Apple and Cisco, which rebounded from Tuesday's big sell-off on concerns about weakening demand.

The Dow has risen 15.6% in the last four days, the largest four-day percentage gain since 1932.

Wednesday's surge was fueled by energy stocks after oil rose more than 7% and General Motors shares soared over 35%. Overall, automakers rose after Deutsche Bank said the beleaguered companies' prospects for a federal bailout have improved.

The U.S government's recent move to prop up Citigroup may have helped investors overlook more economic data that continued to show a weakening economy.

The Dow Jones rose 247.14 points (2.91%); The S&P 500 gained 30.29 points (3.53%); The Nasdaq jumped 67.37 points (4.60%). The S&P's four-day advance is its best run since May.

A 7.2% surge in the price of oil futures lifted energy shares, making Chevron and Exxon Mobil the biggest contributors to the Dow's advance. Chevron rose 4.4% and Exxon Mobil climbed nearly 4%. Crude oil gained $3.67 to settle at $54.44 a barrel.

Dreary economic data included government reports that showed orders for costly manufactured goods such as refrigerators and washing machines, known as durable goods, plummeted in October, while consumers cut spending at the steepest rate in more than seven years.

Citigroup jumped nearly 16% on the NYSE after news late on Tuesday that a Mexican brokerage controlled by billionaire Carlos Slim recently bought $150 million worth of shares in the struggling U.S. bank.

Shares of Apple climbed 4.6% and Cisco Systems rose 6.3% a day after news of a five-day plant closure led a tech sell-off as it sparked jitters over faltering demand.

Volume was fairly healthy on the NYSE, especially on the day before the Thanksgiving holiday, where about 1.42 billion shares changed hands, below last year's estimated daily average of 1.90 billion. On the Nasdaq, about 2.00 billion shares traded, slightly below last year's daily average of 2.17 billion. During the holiday-shortened week, volume typically is lighter than average.

Happy Thanksgiving

We wish all of our clients, readers, and their families a very happy and healthy Thanksgiving.

Source: Reuters

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