Here is some music for your ears -g-
This news is so bullish, I think your "save the bears" fast till Dow 10k should be over very soon. Geez, it's more bullish then post 1987 CRASH. Money put into the market now will make new records in a blinking of an eye -g-
quote..
"The fact that the market's ignoring any piece of negative news is clearly good"
----------------------------------------------------------
Dow closes with best monthly gain since 1987
news.ft.com
The Dow Jones Industrial Average finished a volatile session off its worst levels on Thursday, to stage its best monthly performance in percentage terms since January 1987.
Up 10.6 per cent for the month, the Dow also had its second-best October ever, traditionally one of the worst months for markets.
The release of lower than expected readings on third-quarter gross domestic product and Midwest industrial activity had a relatively benign effect on trading.
The Dow Jones Industrial Average closed down 30.38 to 8,397.03, the S&P 500 index fell 4.92 to 885.80. The tech-heavy Nasdaq Composite ended higher, up 3.20 to 1,329.93.
The US economy grew by 3.1 per cent in the third quarter, less than the 3.6 per cent forecast by economists, the Commerce Department reported. A measure of manufacturing activity in the US Midwest showed contraction ahead of the release of national figures today.
Bruce Steinberg, chief US economist at Merrill Lynch, said the GDP data were "consistent with an economy that is in a weakening trend in the fourth quarter".
Analysts continued to point to a shift in market attitudes and said recent trading patterns suggested a longer-range focus than has been the case earlier this year. "The fact that the market's ignoring any piece of negative news is clearly good . . . if you believe the market's already priced in the slowdown in the economy and is now pricing in a pick-up in the next year," said Matt Johnson, head of US equity cash trading at Lehman Brothers.
However, there are more variables to be factored in, starting with Friday's employment report for October and next week's elections, alongside a Federal Reserve monetary policy meeting.
Markets have predicted a high probability of a 25 basis point rate cut and, because of the Republicans' pro-business stance, the prospect of Republicans regaining control of the US Senate could "throw gasoline on the fire for the bullish case," said Mr Johnson.
Electronic Data Systems was one of the most active stocks on the NYSE, up 9.5 per cent at $15.06, after the second-largest technology services company beat sharply-lowered estimates for revenues and earnings, as well as and announcing 5,000 job cuts.
On the Dow, General Motors led the gains with a 2.1 per cent bounce to $33.25.
Borland Software was a heavily-traded issue on the Nasdaq, up 7.4 per cent to $13.43 after announcing plans to acquire a privately-held company.
Shares in ExxonMobil lost 1.2 per cent to $33.66 even after the oil major reported a sharp fall in net income.
In the same sector ChevronTexaco fell 5.2 per cent to $67.63, after posting a loss and announcing a $1.5bn charge due to investments in Dynegy, the energy trader.
Aetna, the second-largest US health insurer, was 1.6 per cent lower at $40.30, retreating from earlier gains, after reporting more than double profits in the third quarter.
Allied Waste jumped 6.6 per cent to $8.15 after reporting a rise on profits and said it was on track to meet earnings targets for the year. |
