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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: crdesign who wrote (5099)	8/23/2002 2:29:46 PM
From: Jim Willie CB	Respond to of 89467

Thursday, August 22, 2002 Market WrapUp (Puplava website) DOW 9,000!!!! It didn’t seem possible a couple of weeks ago that the Dow would be carrying itself at the levels of today. The markets have been badly in need of a string of days where there were no new accounting scandals, no new bankruptcies and no new terrorist threats. While the markets have been gifted with this environment, it is difficult to imagine that it will continue much longer. CNBC and other media outlets obviously are doing their best to make you think it will, but considering it took some pretty unlikely events or non-events to string this rally together, the chances of it continuing much longer are slim. What is really driving this rally? Reasons may be that the market pricing in an expected 25bp or even 50bp rate cut in the near future, and intervention is being used to lure technical traders back in. If intervention was used, it has worked for the time being, but in so doing they have brought the short-term traders in again, which will only increase the volatility in the end. If you live by the sword, you die by the sword. In this market, the one fundamental thing that has not changed is the market is still a news-driven market. As evidenced in the events of the last few weeks, in the absence of news the market rallies. But once news breaks the wires, the market goes in only one direction, and that is south. In the meantime, consider the latest rally an opportunity to gain some losses back or make some quick gains, because that is what the institutions are using it for. Financial Markets Benchmark indexes gained for a third day in four. The Dow climbed 96.41, or 1.1% to 9053.64. All 10 of the S&P 500's industry groups advanced, giving the index a gain of 13.34, or 1.4% to 962.70. The S&P 500 has rallied 21% since touching a five-year low last month. The Nasdaq Composite Index added 13.70, or 1% to 1422.95, led by Microsoft. Almost two stocks rose for every one that fell on the New York Stock Exchange while four advanced for every three that declined on the Nasdaq Stock Market. Some 1.36 billion shares traded on the Big Board, 14% below the three-month daily average. Overseas Markets European stocks rose as companies including Clariant, ThyssenKrupp and Rolls-Royce buoyed optimism about the outlook for profits. The Dow Jones Stoxx 50 Index added 1.9% to close at 2867.61, its highest in six weeks. The index has risen 17% since July 24, when it declined to a five-year low. All eight major European markets were up during today’s trading. Asian stocks rose after U.S. Federal Reserve officials said interest rates are low enough to fuel an economic rebound in the region's largest overseas market. Exporters such as Sony Corp. and Hon Hai Precision Co. led gains. Japan's Nikkei 225 Stock Average had the biggest rally in the region, advancing 1.8% to 9814.02. Treasury Markets Government bonds declined significantly for a second session as stocks captured investors' attention. The 10-year Treasury note was off 31/32 to yield 4.325% while the 30-year government bond declined 1 6/32 to yield 5.095%. © Copyright Scott Middleton, August 22, 2002