Stocks Rise Over 6%

The Dow fell below 8,000 points but then staged a late day rally to close at 8,835.25, up 552.59 points (+6.67%). The Nasdaq and S& 500 were also up 6.5% and 6.92%, respectively. Bloomberg News reports "investors snapped up the cheapest energy shares on record and real-estate companies gained after CB Richard Ellis Inc. raised cash in a share sale." Now some believe 8,000 points could be the Dow's floor--Eckhardt & Co's Peter Costa told CNBC, "I think 8000 is starting to appear to be a very, very strong support level"--while some just don't know what's going on--JP Morgan Chase economist Michael Feroli told the NY Times, "I have no idea. The markets have two minds here. On the one hand, the data continues to be terrible. On the other hand, I think there’s people trying to pick bottoms here.”

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By Jen Chung in News on November 13, 2008 4:33 PM

Comments [rss]

sartre_is_for_lovers

#8 you saw the craiglist's casual encounters ad too?

NannyState

I always knew the Dow was a bottom.

EricRoberts

It's one thing to try and pick the bottom, but quite another to chase the bottom 800 points. People are dumb.

Snoopy

I've talked to my advisers and they all told me the market will be in flux. There will be upswings and downswings. But they all are in agreement. To get out of this quickly they suggested going down to Atlantic City and put my money on Red, after seeing black win four times in a row.

r1b2

It will continue to test 8000 for some time, but more bad reports will continue to pour in and then there will be a test at 7000, perhaps lower. Don't expect significant upticks until well into Q2 09.