Guest guest Posted March 6, 2007 Report Share Posted March 6, 2007 U.S. Stocks Rise Amid a Global Rebound; Financial Shares Climb By Michael Patterson March 6 (Bloomberg) -- U.S. stocks rose for the first time in four days as a selloff that wiped out $1 trillion in market value prompted investors to buy shares that they considered inexpensive relative to earnings growth. Citigroup Inc. led financial stocks to their best advance since July after Treasury Secretary Henry Paulson said increasing defaults are contained to subprime mortgage lenders and won't widen to the rest of the industry. Newmont Mining Corp. and Exxon Mobil Corp. climbed as metals and oil prices rebounded. All 10 industry groups in the Standard & Poor's 500 Index gained. The rise in the U.S., which pushed the S & P 500 to its biggest increase in five months, followed rallies in Asia and Europe. Emerging markets jumped the most since June. Members of the S & P 500 now trade at an average 15 times forecast profit, 45 percent less than the monthly average of 27.3 times actual earnings over the past decade. ``We're finding very strong fundamentals across the board and very good valuations,'' said Shawn Price, who manages $3.2 billion at Navellier & Associates Inc. in Reno, Nevada. ``As new assets come in, we are investing those. It's still pretty bullish for us.'' The S & P 500 added 23.33, or 1.7 percent, to 1397.45 as of 3:16 p.m. in New York for its best performance since July. The Dow Jones Industrial Average climbed 166.31, or 1.4 percent, to 12,216.72 as all 30 members rose. The Nasdaq Composite Index increased 48.04, or 2.1 percent, to 2388.72. Yesterday, concern that bank earnings growth will diminish as defaults increase pushed stocks down for a third straight day. Paulson, Financials Shares of financial companies contributed the most to the S & P 500's advance today among 10 groups, climbing 1.5 percent. Paulson, moving to cool concern that defaults among subprime mortgage companies will spread to less risky lenders, said ``credit issues'' arising from the U.S. housing slump will be limited. ``We're buying financial stocks,'' said John Forelli, who helps oversee $8 billion at Independence Investment LLC in Boston. ``We don't think the subprime situation is going to be as widespread as people fear.'' Citigroup advanced $1.55 to $50.80. The biggest U.S. bank offered 1.25 trillion yen ($10.8 billion) to buy Nikko Cordial Corp., its investment-banking partner in Japan. Citigroup will pay 1,350 yen a share to boost its stake from 4.9 percent. With the purchase, the bank's biggest takeover bid in Asia, Citigroup would gain 109 branches and 12,000 employees in Japan. Bear Stearns, Lehman Shares of Bear Stearns Cos. and Lehman Brothers Holdings Inc., which make loans and repackage them into securities, snapped nine-day losing streaks. Bear Stearns gained $5.03, or 3.5 percent, to $149.53 for the best advance since July. Lehman climbed $2.90 to $74.02. New Century Financial Corp., the second-biggest U.S. lender of home loans to risky borrowers, added $1.36 to $5.92. The shares posted a record drop yesterday after New Century disclosed it faces a criminal probe and JPMorgan said the company may declare bankruptcy. A so-called relative strength index suggested that the S & P 500 index is poised to rise after its weeklong slump. The 14-day RSI reading fell yesterday to 25.7, the lowest since the current bull market began. The previous low was 28.3 in August 2004. By calculating the degree by which gains outpace losses in a given time period, the RSI identifies possible turning points for a stock or market. The most commonly used interval is 14 trading days. Raw-materials companies, which fell the most among 10 industry groups in the S & P 500 over the past week, today advanced 2.4 percent for the best performance. Newmont, the world's second-biggest gold producer, added 82 cents to $43.30 as bullion prices rose. Freeport-McMoRan Copper & Gold Inc. climbed $2.31 to $55.40 as copper jumped the most in a week. Energy Shares Energy companies also climbed along with oil prices. Exxon, the world's largest oil company, gained 84 cents to $70.82. ConocoPhillips, the third-largest U.S. oil company, added $1.28 to $65.77. Crude futures increased 1 percent to $60.67 a barrel in New York. ``A lot of the correction is over,'' said Robert Hormats, vice chairman of Goldman Sachs International. ``People are beginning to realize the world economy will still grow at a reasonable rate.'' More than 13 stocks gained for every one that fell on the New York Stock Exchange, the broadest advance since July. Some 1.5 billion shares changed hands on the Big Board, 23 percent less than the same time a week ago, when the global selloff began. Yen, Treasuries Japan's yen and U.S. Treasuries declined as share prices rebounded. The yen snapped a three-day advance versus the euro and dollar, suggesting investors may resume so-called carry trades where they borrow in Japan to buy higher yielding assets elsewhere. Treasuries fell for the first time in almost a week as the rally in stocks reduced demand for the safety of government debt. The S & P 500, which tumbled 4.4 percent last week, has gone four years without falling 10 percent from a recent high. Its last percentage drop of more than 10 percent, a common definition of a market ``correction,'' took place from Nov. 27, 2002, to March 11, 2003. Following that trough, the S & P 500 climbed as much as 82 percent. On Feb. 20, the benchmark set a six-year high, while the Dow closed at a record. Recession? Former Federal Reserve Chairman Alan Greenspan said in an interview yesterday there's a ``one-third probability'' of a U.S. recession this year and that the current expansion won't have the staying power of its decade-long predecessor. Economic reports today signaled manufacturing and housing remain weak. Factory orders slid 5.6 percent in January after a 2.6 percent increase the previous month, the Commerce Department said. Excluding transportation equipment, bookings fell 2.9 percent. An index of signed purchase agreements dropped 4.1 percent in January, according to the National Association of Realtors. Meanwhile, worker productivity last quarter rose at an annual rate of 1.6 percent, less than the 3 percent pace the government first reported. Labor costs jumped 6.6 percent, reflecting a one-time increase in bonuses and suggesting inflation pressures persist. The smaller gain in efficiency follows revisions last week that showed a slower pace of economic growth during the fourth quarter than first estimated. Bernanke Fannie Mae and Freddie Mac extended their gains after Fed Chairman Ben S. Bernanke said the government-chartered companies, the largest sources of money for U.S. home loans, should sell most of their $1.4 trillion in assets to refocus on homeownership among low-income Americans. Bernanke spoke at a meeting of the Independent Community Bankers of America in Honolulu. Fannie Mae rose $1.53 to $54.65. Freddie Mac advanced 94 cents to $62.30. General Motors Corp. rose 61 cents to $31.05, snapping a 13- day slump. The stock briefly fell after Lehman Brothers Holdings Inc. said the automaker may take a charge of almost $1 billion to cover bad mortgage loans made by its former home-lending unit. Altria Group Inc. advanced $2.13, or 2.6 percent, to $84.34 for the second-best gain in the Dow average. Deutsche Bank AG upgraded the parent of the world's largest cigarette maker to ``buy'' from ``hold'' because tobacco assets are a good buy when ``investor fear peaks,'' analysts including Marc Greenberg wrote in a note to clients. ADC Telecommunications Inc. gained 86 cents, or 5.6 percent, to $16.13 for the second-biggest advance in the S & P 500. The maker of phone-networking gear said first-quarter profit from continuing operations was 8 cents a share. That beat the 6-cent average analyst estimate compiled by Bloomberg. To contact the reporter on this story: Michael Patterson in New York at mpatterson10 ; Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 7, 2007 Report Share Posted March 7, 2007 Hi Thor, Pardon me, but weren't we (those following the Cancer chart) predicting more of a fall this spring... Maybe the correction already happened in this case? Thanks. SallyOn 3/6/07, cosmologer <cosmologer wrote: U.S. Stocks Rise Amid a Global Rebound; Financial Shares ClimbBy Michael PattersonMarch 6 (Bloomberg) -- U.S. stocks rose for the first time in fourdays as a selloff that wiped out $1 trillion in market value prompted investors to buy shares that they considered inexpensive relative toearnings growth.Citigroup Inc. led financial stocks to their best advance since Julyafter Treasury Secretary Henry Paulson said increasing defaults are contained to subprime mortgage lenders and won't widen to the rest ofthe industry. Newmont Mining Corp. and Exxon Mobil Corp. climbed asmetals and oil prices rebounded. All 10 industry groups in theStandard & Poor's 500 Index gained. The rise in the U.S., which pushed the S & P 500 to its biggest increasein five months, followed rallies in Asia and Europe. Emerging marketsjumped the most since June. Members of the S & P 500 now trade at an average 15 times forecast profit, 45 percent less than the monthlyaverage of 27.3 times actual earnings over the past decade.``We're finding very strong fundamentals across the board and verygood valuations,'' said Shawn Price, who manages $3.2 billion at Navellier & Associates Inc. in Reno, Nevada. ``As new assets come in,we are investing those. It's still pretty bullish for us.''The S & P 500 added 23.33, or 1.7 percent, to 1397.45 as of 3:16 p.m. inNew York for its best performance since July. The Dow Jones IndustrialAverage climbed 166.31, or 1.4 percent, to 12,216.72 as all 30 membersrose. The Nasdaq Composite Index increased 48.04, or 2.1 percent, to 2388.72.Yesterday, concern that bank earnings growth will diminish as defaultsincrease pushed stocks down for a third straight day.Paulson, FinancialsShares of financial companies contributed the most to the S & P 500's advance today among 10 groups, climbing 1.5 percent.Paulson, moving to cool concern that defaults among subprime mortgagecompanies will spread to less risky lenders, said ``credit issues''arising from the U.S. housing slump will be limited.``We're buying financial stocks,'' said John Forelli, who helpsoversee $8 billion at Independence Investment LLC in Boston. ``Wedon't think the subprime situation is going to be as widespread as people fear.''Citigroup advanced $1.55 to $50.80. The biggest U.S. bank offered 1.25trillion yen ($10.8 billion) to buy Nikko Cordial Corp., itsinvestment-banking partner in Japan. Citigroup will pay 1,350 yen a share to boost its stake from 4.9 percent. With the purchase, thebank's biggest takeover bid in Asia, Citigroup would gain 109 branchesand 12,000 employees in Japan.Bear Stearns, LehmanShares of Bear Stearns Cos. and Lehman Brothers Holdings Inc., which make loans and repackage them into securities, snapped nine-day losingstreaks. Bear Stearns gained $5.03, or 3.5 percent, to $149.53 for thebest advance since July. Lehman climbed $2.90 to $74.02.New Century Financial Corp., the second-biggest U.S. lender of homeloans to risky borrowers, added $1.36 to $5.92. The shares posted arecord drop yesterday after New Century disclosed it faces a criminalprobe and JPMorgan said the company may declare bankruptcy. A so-called relative strength index suggested that the S & P 500 indexis poised to rise after its weeklong slump. The 14-day RSI readingfell yesterday to 25.7, the lowest since the current bull market began. The previous low was 28.3 in August 2004.By calculating the degree by which gains outpace losses in a giventime period, the RSI identifies possible turning points for a stock ormarket. The most commonly used interval is 14 trading days. Raw-materials companies, which fell the most among 10 industry groupsin the S & P 500 over the past week, today advanced 2.4 percent for thebest performance.Newmont, the world's second-biggest gold producer, added 82 cents to $43.30 as bullion prices rose. Freeport-McMoRan Copper & Gold Inc.climbed $2.31 to $55.40 as copper jumped the most in a week.Energy SharesEnergy companies also climbed along with oil prices. Exxon, the world's largest oil company, gained 84 cents to $70.82.ConocoPhillips, the third-largest U.S. oil company, added $1.28 to$65.77. Crude futures increased 1 percent to $60.67 a barrel in New York.``A lot of the correction is over,'' said Robert Hormats, vice chairman of Goldman Sachs International. ``People are beginning torealize the world economy will still grow at a reasonable rate.''More than 13 stocks gained for every one that fell on the New York Stock Exchange, the broadest advance since July. Some 1.5 billionshares changed hands on the Big Board, 23 percent less than the sametime a week ago, when the global selloff began.Yen, Treasuries Japan's yen and U.S. Treasuries declined as share prices rebounded.The yen snapped a three-day advance versus the euro and dollar,suggesting investors may resume so-called carry trades where theyborrow in Japan to buy higher yielding assets elsewhere. Treasuries fell for the first time in almost a week as the rally in stocksreduced demand for the safety of government debt.The S & P 500, which tumbled 4.4 percent last week, has gone four yearswithout falling 10 percent from a recent high. Its last percentage drop of more than 10 percent, a common definition of a market``correction,'' took place from Nov. 27, 2002, to March 11, 2003.Following that trough, the S & P 500 climbed as much as 82 percent. On Feb. 20, the benchmark set a six-year high, while the Dow closed at arecord.Recession?Former Federal Reserve Chairman Alan Greenspan said in an interviewyesterday there's a ``one-third probability'' of a U.S. recession thisyear and that the current expansion won't have the staying power ofits decade-long predecessor.Economic reports today signaled manufacturing and housing remain weak.Factory orders slid 5.6 percent in January after a 2.6 percentincrease the previous month, the Commerce Department said. Excludingtransportation equipment, bookings fell 2.9 percent. An index ofsigned purchase agreements dropped 4.1 percent in January, accordingto the National Association of Realtors.Meanwhile, worker productivity last quarter rose at an annual rate of1.6 percent, less than the 3 percent pace the government first reported. Labor costs jumped 6.6 percent, reflecting a one-timeincrease in bonuses and suggesting inflation pressures persist.The smaller gain in efficiency follows revisions last week that showeda slower pace of economic growth during the fourth quarter than first estimated.BernankeFannie Mae and Freddie Mac extended their gains after Fed Chairman BenS. Bernanke said the government-chartered companies, the largestsources of money for U.S. home loans, should sell most of their $1.4 trillion in assets to refocus on homeownership among low-incomeAmericans. Bernanke spoke at a meeting of the Independent CommunityBankers of America in Honolulu.Fannie Mae rose $1.53 to $54.65. Freddie Mac advanced 94 cents to $62.30. General Motors Corp. rose 61 cents to $31.05, snapping a 13- dayslump. The stock briefly fell after Lehman Brothers Holdings Inc. saidthe automaker may take a charge of almost $1 billion to cover badmortgage loans made by its former home-lending unit. Altria Group Inc. advanced $2.13, or 2.6 percent, to $84.34 for thesecond-best gain in the Dow average. Deutsche Bank AG upgraded theparent of the world's largest cigarette maker to ``buy'' from ``hold'' because tobacco assets are a good buy when ``investor fear peaks,''analysts including Marc Greenberg wrote in a note to clients.ADC Telecommunications Inc. gained 86 cents, or 5.6 percent, to $16.13 for the second-biggest advance in the S & P 500. The maker ofphone-networking gear said first-quarter profit from continuingoperations was 8 cents a share. That beat the 6-cent average analystestimate compiled by Bloomberg. To contact the reporter on this story: Michael Patterson in New Yorkat mpatterson10 ; Waves of LoveEntering the PlanetIt's inevitable. It's contagious~ Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 7, 2007 Report Share Posted March 7, 2007 Dear Sally, A day does not a Spring make. Best wishes, Thor SAMVA , " Sally Spencer " <sally234 wrote: > > Hi Thor, > > Pardon me, but weren't we (those following the Cancer chart) predicting more > of a fall this spring... > > Maybe the correction already happened in this case? > > Thanks. > > Sally > > On 3/6/07, cosmologer <cosmologer wrote: > > > > U.S. Stocks Rise Amid a Global Rebound; Financial Shares Climb > > By Michael Patterson > > > > March 6 (Bloomberg) -- U.S. stocks rose for the first time in four > > days as a selloff that wiped out $1 trillion in market value prompted > > investors to buy shares that they considered inexpensive relative to > > earnings growth. > > > > Citigroup Inc. led financial stocks to their best advance since July > > after Treasury Secretary Henry Paulson said increasing defaults are > > contained to subprime mortgage lenders and won't widen to the rest of > > the industry. Newmont Mining Corp. and Exxon Mobil Corp. climbed as > > metals and oil prices rebounded. All 10 industry groups in the > > Standard & Poor's 500 Index gained. > > > > The rise in the U.S., which pushed the S & P 500 to its biggest increase > > in five months, followed rallies in Asia and Europe. Emerging markets > > jumped the most since June. Members of the S & P 500 now trade at an > > average 15 times forecast profit, 45 percent less than the monthly > > average of 27.3 times actual earnings over the past decade. > > > > ``We're finding very strong fundamentals across the board and very > > good valuations,'' said Shawn Price, who manages $3.2 billion at > > Navellier & Associates Inc. in Reno, Nevada. ``As new assets come in, > > we are investing those. It's still pretty bullish for us.'' > > > > The S & P 500 added 23.33, or 1.7 percent, to 1397.45 as of 3:16 p.m. in > > New York for its best performance since July. The Dow Jones Industrial > > Average climbed 166.31, or 1.4 percent, to 12,216.72 as all 30 members > > rose. The Nasdaq Composite Index increased 48.04, or 2.1 percent, to > > 2388.72. > > > > Yesterday, concern that bank earnings growth will diminish as defaults > > increase pushed stocks down for a third straight day. > > > > Paulson, Financials > > > > Shares of financial companies contributed the most to the S & P 500's > > advance today among 10 groups, climbing 1.5 percent. > > > > Paulson, moving to cool concern that defaults among subprime mortgage > > companies will spread to less risky lenders, said ``credit issues'' > > arising from the U.S. housing slump will be limited. > > > > ``We're buying financial stocks,'' said John Forelli, who helps > > oversee $8 billion at Independence Investment LLC in Boston. ``We > > don't think the subprime situation is going to be as widespread as > > people fear.'' > > > > Citigroup advanced $1.55 to $50.80. The biggest U.S. bank offered 1.25 > > trillion yen ($10.8 billion) to buy Nikko Cordial Corp., its > > investment-banking partner in Japan. Citigroup will pay 1,350 yen a > > share to boost its stake from 4.9 percent. With the purchase, the > > bank's biggest takeover bid in Asia, Citigroup would gain 109 branches > > and 12,000 employees in Japan. > > > > Bear Stearns, Lehman > > > > Shares of Bear Stearns Cos. and Lehman Brothers Holdings Inc., which > > make loans and repackage them into securities, snapped nine-day losing > > streaks. Bear Stearns gained $5.03, or 3.5 percent, to $149.53 for the > > best advance since July. Lehman climbed $2.90 to $74.02. > > > > New Century Financial Corp., the second-biggest U.S. lender of home > > loans to risky borrowers, added $1.36 to $5.92. The shares posted a > > record drop yesterday after New Century disclosed it faces a criminal > > probe and JPMorgan said the company may declare bankruptcy. > > > > A so-called relative strength index suggested that the S & P 500 index > > is poised to rise after its weeklong slump. The 14-day RSI reading > > fell yesterday to 25.7, the lowest since the current bull market > > began. The previous low was 28.3 in August 2004. > > > > By calculating the degree by which gains outpace losses in a given > > time period, the RSI identifies possible turning points for a stock or > > market. The most commonly used interval is 14 trading days. > > > > Raw-materials companies, which fell the most among 10 industry groups > > in the S & P 500 over the past week, today advanced 2.4 percent for the > > best performance. > > > > Newmont, the world's second-biggest gold producer, added 82 cents to > > $43.30 as bullion prices rose. Freeport-McMoRan Copper & Gold Inc. > > climbed $2.31 to $55.40 as copper jumped the most in a week. > > > > Energy Shares > > > > Energy companies also climbed along with oil prices. Exxon, the > > world's largest oil company, gained 84 cents to $70.82. > > ConocoPhillips, the third-largest U.S. oil company, added $1.28 to > > $65.77. Crude futures increased 1 percent to $60.67 a barrel in New York. > > > > ``A lot of the correction is over,'' said Robert Hormats, vice > > chairman of Goldman Sachs International. ``People are beginning to > > realize the world economy will still grow at a reasonable rate.'' > > > > More than 13 stocks gained for every one that fell on the New York > > Stock Exchange, the broadest advance since July. Some 1.5 billion > > shares changed hands on the Big Board, 23 percent less than the same > > time a week ago, when the global selloff began. > > > > Yen, Treasuries > > > > Japan's yen and U.S. Treasuries declined as share prices rebounded. > > > > The yen snapped a three-day advance versus the euro and dollar, > > suggesting investors may resume so-called carry trades where they > > borrow in Japan to buy higher yielding assets elsewhere. Treasuries > > fell for the first time in almost a week as the rally in stocks > > reduced demand for the safety of government debt. > > > > The S & P 500, which tumbled 4.4 percent last week, has gone four years > > without falling 10 percent from a recent high. Its last percentage > > drop of more than 10 percent, a common definition of a market > > ``correction,'' took place from Nov. 27, 2002, to March 11, 2003. > > > > Following that trough, the S & P 500 climbed as much as 82 percent. On > > Feb. 20, the benchmark set a six-year high, while the Dow closed at a > > record. > > > > Recession? > > > > Former Federal Reserve Chairman Alan Greenspan said in an interview > > yesterday there's a ``one-third probability'' of a U.S. recession this > > year and that the current expansion won't have the staying power of > > its decade-long predecessor. > > > > Economic reports today signaled manufacturing and housing remain weak. > > > > Factory orders slid 5.6 percent in January after a 2.6 percent > > increase the previous month, the Commerce Department said. Excluding > > transportation equipment, bookings fell 2.9 percent. An index of > > signed purchase agreements dropped 4.1 percent in January, according > > to the National Association of Realtors. > > > > Meanwhile, worker productivity last quarter rose at an annual rate of > > 1.6 percent, less than the 3 percent pace the government first > > reported. Labor costs jumped 6.6 percent, reflecting a one-time > > increase in bonuses and suggesting inflation pressures persist. > > > > The smaller gain in efficiency follows revisions last week that showed > > a slower pace of economic growth during the fourth quarter than first > > estimated. > > > > Bernanke > > > > Fannie Mae and Freddie Mac extended their gains after Fed Chairman Ben > > S. Bernanke said the government-chartered companies, the largest > > sources of money for U.S. home loans, should sell most of their $1.4 > > trillion in assets to refocus on homeownership among low-income > > Americans. Bernanke spoke at a meeting of the Independent Community > > Bankers of America in Honolulu. > > > > Fannie Mae rose $1.53 to $54.65. Freddie Mac advanced 94 cents to $62.30. > > > > General Motors Corp. rose 61 cents to $31.05, snapping a 13- day > > slump. The stock briefly fell after Lehman Brothers Holdings Inc. said > > the automaker may take a charge of almost $1 billion to cover bad > > mortgage loans made by its former home-lending unit. > > > > Altria Group Inc. advanced $2.13, or 2.6 percent, to $84.34 for the > > second-best gain in the Dow average. Deutsche Bank AG upgraded the > > parent of the world's largest cigarette maker to ``buy'' from ``hold'' > > because tobacco assets are a good buy when ``investor fear peaks,'' > > analysts including Marc Greenberg wrote in a note to clients. > > > > ADC Telecommunications Inc. gained 86 cents, or 5.6 percent, to $16.13 > > for the second-biggest advance in the S & P 500. The maker of > > phone-networking gear said first-quarter profit from continuing > > operations was 8 cents a share. That beat the 6-cent average analyst > > estimate compiled by Bloomberg. > > > > To contact the reporter on this story: Michael Patterson in New York > > at mpatterson10 ; > > > > > > > > > Waves of Love > Entering the Planet > It's inevitable. It's contagious~ > Quote Link to comment Share on other sites More sharing options...
Guest guest Posted March 8, 2007 Report Share Posted March 8, 2007 Dear Thor, Thanks for all your details in the other email.. Aloha, Sally On 3/7/07, cosmologer <cosmologer wrote: Dear Sally,A day does not a Spring make.Best wishes,Thor SAMVA , " Sally Spencer " <sally234 wrote:>> Hi Thor,>> Pardon me, but weren't we (those following the Cancer chart)predicting more> of a fall this spring... >> Maybe the correction already happened in this case?>> Thanks.>> Sally>> On 3/6/07, cosmologer <cosmologer wrote:> >> > U.S. Stocks Rise Amid a Global Rebound; Financial Shares Climb > > By Michael Patterson> >> > March 6 (Bloomberg) -- U.S. stocks rose for the first time in four> > days as a selloff that wiped out $1 trillion in market valueprompted> > investors to buy shares that they considered inexpensive relative to> > earnings growth.> >> > Citigroup Inc. led financial stocks to their best advance sinceJuly> > after Treasury Secretary Henry Paulson said increasing defaultsare > > contained to subprime mortgage lenders and won't widen to therest of> > the industry. Newmont Mining Corp. and Exxon Mobil Corp. climbedas> > metals and oil prices rebounded. All 10 industry groups in the > > Standard & Poor's 500 Index gained.> >> > The rise in the U.S., which pushed the S & P 500 to its biggestincrease> > in five months, followed rallies in Asia and Europe. Emerging markets> > jumped the most since June. Members of the S & P 500 now trade at an> > average 15 times forecast profit, 45 percent less than the monthly> > average of 27.3 times actual earnings over the past decade. > >> > ``We're finding very strong fundamentals across the board and very> > good valuations,'' said Shawn Price, who manages $3.2 billion at> > Navellier & Associates Inc. in Reno, Nevada. ``As new assets come in,> > we are investing those. It's still pretty bullish for us.''> >> > The S & P 500 added 23.33, or 1.7 percent, to 1397.45 as of 3:16p.m. in> > New York for its best performance since July. The Dow Jones Industrial> > Average climbed 166.31, or 1.4 percent, to 12,216.72 as all 30members> > rose. The Nasdaq Composite Index increased 48.04, or 2.1 percent,to> > 2388.72.> > > > Yesterday, concern that bank earnings growth will diminish asdefaults> > increase pushed stocks down for a third straight day.> >> > Paulson, Financials> >> > Shares of financial companies contributed the most to the S & P 500's> > advance today among 10 groups, climbing 1.5 percent.> >> > Paulson, moving to cool concern that defaults among subprimemortgage> > companies will spread to less risky lenders, said ``credit issues''> > arising from the U.S. housing slump will be limited.> >> > ``We're buying financial stocks,'' said John Forelli, who helps> > oversee $8 billion at Independence Investment LLC in Boston. ``We > > don't think the subprime situation is going to be as widespread as> > people fear.''> >> > Citigroup advanced $1.55 to $50.80. The biggest U.S. bank offered1.25 > > trillion yen ($10.8 billion) to buy Nikko Cordial Corp., its> > investment-banking partner in Japan. Citigroup will pay 1,350 yena> > share to boost its stake from 4.9 percent. With the purchase, the > > bank's biggest takeover bid in Asia, Citigroup would gain 109branches> > and 12,000 employees in Japan.> >> > Bear Stearns, Lehman> >> > Shares of Bear Stearns Cos. and Lehman Brothers Holdings Inc., which> > make loans and repackage them into securities, snapped nine-daylosing> > streaks. Bear Stearns gained $5.03, or 3.5 percent, to $149.53for the> > best advance since July. Lehman climbed $2.90 to $74.02. > >> > New Century Financial Corp., the second-biggest U.S. lender ofhome> > loans to risky borrowers, added $1.36 to $5.92. The shares posteda> > record drop yesterday after New Century disclosed it faces a criminal> > probe and JPMorgan said the company may declare bankruptcy.> >> > A so-called relative strength index suggested that the S & P 500index> > is poised to rise after its weeklong slump. The 14-day RSI reading > > fell yesterday to 25.7, the lowest since the current bull market> > began. The previous low was 28.3 in August 2004.> >> > By calculating the degree by which gains outpace losses in a given > > time period, the RSI identifies possible turning points for astock or> > market. The most commonly used interval is 14 trading days.> >> > Raw-materials companies, which fell the most among 10 industry groups> > in the S & P 500 over the past week, today advanced 2.4 percent forthe> > best performance.> >> > Newmont, the world's second-biggest gold producer, added 82 cents to> > $43.30 as bullion prices rose. Freeport-McMoRan Copper & Gold Inc.> > climbed $2.31 to $55.40 as copper jumped the most in a week.> >> > Energy Shares> > > > Energy companies also climbed along with oil prices. Exxon, the> > world's largest oil company, gained 84 cents to $70.82.> > ConocoPhillips, the third-largest U.S. oil company, added $1.28 to > > $65.77. Crude futures increased 1 percent to $60.67 a barrel inNew York.> >> > ``A lot of the correction is over,'' said Robert Hormats, vice> > chairman of Goldman Sachs International. ``People are beginning to > > realize the world economy will still grow at a reasonable rate.''> >> > More than 13 stocks gained for every one that fell on the New York> > Stock Exchange, the broadest advance since July. Some 1.5 billion> > shares changed hands on the Big Board, 23 percent less than thesame> > time a week ago, when the global selloff began.> >> > Yen, Treasuries> >> > Japan's yen and U.S. Treasuries declined as share pricesrebounded.> >> > The yen snapped a three-day advance versus the euro and dollar,> > suggesting investors may resume so-called carry trades where they > > borrow in Japan to buy higher yielding assets elsewhere.Treasuries> > fell for the first time in almost a week as the rally in stocks> > reduced demand for the safety of government debt. > >> > The S & P 500, which tumbled 4.4 percent last week, has gone fouryears> > without falling 10 percent from a recent high. Its last percentage> > drop of more than 10 percent, a common definition of a market > > ``correction,'' took place from Nov. 27, 2002, to March 11, 2003.> >> > Following that trough, the S & P 500 climbed as much as 82 percent.On> > Feb. 20, the benchmark set a six-year high, while the Dow closed at a> > record.> >> > Recession?> >> > Former Federal Reserve Chairman Alan Greenspan said in aninterview> > yesterday there's a ``one-third probability'' of a U.S. recessionthis> > year and that the current expansion won't have the staying powerof> > its decade-long predecessor.> >> > Economic reports today signaled manufacturing and housing remain weak.> >> > Factory orders slid 5.6 percent in January after a 2.6 percent> > increase the previous month, the Commerce Department said.Excluding> > transportation equipment, bookings fell 2.9 percent. An index of> > signed purchase agreements dropped 4.1 percent in January,according> > to the National Association of Realtors.> >> > Meanwhile, worker productivity last quarter rose at an annual rate of> > 1.6 percent, less than the 3 percent pace the government first> > reported. Labor costs jumped 6.6 percent, reflecting a one-time> > increase in bonuses and suggesting inflation pressures persist. > >> > The smaller gain in efficiency follows revisions last week thatshowed> > a slower pace of economic growth during the fourth quarter thanfirst> > estimated.> > > > Bernanke> >> > Fannie Mae and Freddie Mac extended their gains after FedChairman Ben> > S. Bernanke said the government-chartered companies, the largest> > sources of money for U.S. home loans, should sell most of their$1.4> > trillion in assets to refocus on homeownership among low-income> > Americans. Bernanke spoke at a meeting of the IndependentCommunity> > Bankers of America in Honolulu. > >> > Fannie Mae rose $1.53 to $54.65. Freddie Mac advanced 94 cents to$62.30.> >> > General Motors Corp. rose 61 cents to $31.05, snapping a 13- day> > slump. The stock briefly fell after Lehman Brothers Holdings Inc. said> > the automaker may take a charge of almost $1 billion to cover bad> > mortgage loans made by its former home-lending unit.> >> > Altria Group Inc. advanced $2.13, or 2.6 percent, to $84.34 for the> > second-best gain in the Dow average. Deutsche Bank AG upgraded the> > parent of the world's largest cigarette maker to ``buy'' from``hold''> > because tobacco assets are a good buy when ``investor fear peaks,''> > analysts including Marc Greenberg wrote in a note to clients.> >> > ADC Telecommunications Inc. gained 86 cents, or 5.6 percent, to$16.13> > for the second-biggest advance in the S & P 500. The maker of > > phone-networking gear said first-quarter profit from continuing> > operations was 8 cents a share. That beat the 6-cent averageanalyst> > estimate compiled by Bloomberg.> > > > To contact the reporter on this story: Michael Patterson in NewYork> > at mpatterson10 ;> >> >> >> >> Waves of Love> Entering the Planet > It's inevitable. It's contagious~> Quote Link to comment Share on other sites More sharing options...
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