US stocks surge, snapping 6-day losing streak

[webfact]

US stocks surge, snapping 6-day losing streak
By ALEX VEIGA

NEW YORK: -- The Dow Jones industrial average rocketed more than 600 points Wednesday, its biggest gain in seven years, snapping a six-day losing streak that had Americans nervously checking their investment balances.

While the surge came as a relief to many, Wall Street professionals warned that more rough days lie ahead, in part because of weakness in China, where signs of an economic slowdown triggered the sell-off that has shaken global markets over the past week.

Heading into Wednesday, the three major U.S. stock indexes had dropped six days in a row, the longest slide in more than three years. The Dow lost about 1,900 points over that period, and more than $2 trillion in corporate value was wiped out.

On Tuesday, a daylong rally collapsed in the final minutes of trading. On Wednesday, the market opened strong again, and the question all day was whether the rally would hold. It did, and picked up speed just before the closing bell.

The Dow vaulted 619.07 points, or 4 percent, to 16,285.51. It was the Dow's third-biggest point gain of all time and its largest since Oct. 28, 2008, when it soared 889 points.

The Standard & Poor's 500 index, a much broader measure of the stock market, gained 72.90 points, or 3.9 percent, to 1,940.51. In percentage terms, it was the best day for the S&P 500 in nearly four years.

The Nasdaq composite rose 191.05 points, or 4.2 percent, to 4,697.54.

Analysts said investors apparently saw the big sell-off as an opportunity to go bargain-hunting and buy low. "That always leads to a bounce or spike in the market," said Quincy Krosby, market strategist for Prudential Financial.

Another factor was believed to be a comment on Wednesday from the head of the New York Federal Reserve Bank, William Dudley, who said that because of the slowdown in China and other reasons, the case for the Fed to raise rock-bottom interest rates next month for the first time in nearly a decade is "less compelling" than it was a few weeks ago.

"That certainly helped the market," Krosby said.

The U.S. stock market has been on a run-up that has lasted more than six years and pushed the major indexes to all-time highs. Investors worry that the economy could falter if the Fed raises rates too soon.

Over the past few days, ordinary Americans with 401(k)s and other investments have been calling their financial advisers in search of reassurance.

"I wouldn't say it is full-blown panic," said Brennan Miller, a branch manager for Charles Schwab in Chicago. "Markets have been steadily advancing for several years, and that breeds some complacency. This caught people off guard."

Any sign that the market has bottomed out could encourage investors to get back in.

"There's a lot of cash on the sidelines waiting to get in, so to the extent that there's any sort of bottom seen, that will increase people's confidence and boldness," said Erik Davidson, chief investment officer for Wells Fargo Private Bank.

Still, the market has a ways to go before it recovers its run of recent losses. The Dow remains down 8.6 percent this year, while the S&P 500 is off 5.8 percent. The Nasdaq is down just 0.8 percent.

And despite Wednesday's strong rebound, analysts said there are probably more roller-coaster days ahead, good and bad, because of China as well as worries about a Fed rate increase.

In international markets, major indexes in Germany, France and Britain fell anywhere from 1.3 to 1.7 percent. Markets in Asia were mixed. Japan's Nikkei 225 stock index rose 3.2 percent. Hong Kong's Hang Seng index fell 0.5 percent.

The price of oil fell back below $39 a barrel after a U.S. government report showed an unexpected decline in demand for gasoline. U.S. government bond prices fell, and the yield on the 10-year Treasury note rose to 2.18 percent.
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AP Business Writers Steve Rothwell and Ken Sweet in New York contributed to this story.

-- (c) Associated Press 2015-08-27

[johnnysunshine]

PPT stands for Plunge Protection Team, but their real name is: The President's Working Group on Financial Markets. This group was created by executive order in 1988 by President Reagan. It consists of the U.S. Treasury Sec. , the Chairperson of the Fed, The chairperson of the SEC, and the Chairperson of the Commodity Futures Trading Commission (CFTC), and they were created after the bloodbath that is otherwise known as Black Monday, or the October Crash 1987, in order to shore up the markets. and some say to even manipulate them. But I won't go there, I'll just say what the Forbes said yesterday. "U.S. Plunge Protection Team Out In Force This Morning".

Unfortunately the PPT does not have enough to stop what this forthcoming avalanche!

[Harsh Jones]

US stocks surged because the money printing addicted economy got a promise of another fix of phantom money. This exact same thing happened in October 2014 when Fed governer James Bullard hinted that there could be more QE coming as the market was crashing.

But today, it was Fed mouthpiece Bill Dudley that did the deed.

DUDLEY: CASE FOR SEPT RATE HIKE LESS COMPELLING

[elgordo38]

PPT stands for Plunge Protection Team, but their real name is: The President's Working Group on Financial Markets. This group was created by executive order in 1988 by President Reagan. It consists of the U.S. Treasury Sec. , the Chairperson of the Fed, The chairperson of the SEC, and the Chairperson of the Commodity Futures Trading Commission (CFTC), and they were created after the bloodbath that is otherwise known as Black Monday, or the October Crash 1987, in order to shore up the markets. and some say to even manipulate them. But I won't go there, I'll just say what the Forbes said yesterday. "U.S. Plunge Protection Team Out In Force This Morning".

Unfortunately the PPT does not have enough to stop what this forthcoming avalanche!

Well the Chinese and the Americans do have much in common. Both are involved in propping up this Las Vegas thing called the stock market. You can try and bet against the market but you know the old saying "The house always wins" and the house in this case is the Chinese and American governments manipulating the market why you ask well to help their big business buddies. The government bailout only went on to prove to investors that governments in general will by hook or by crook not allow the markets to fail. The Fed at zero interest rates is out of financial bullets. Its a suckers game that will end badly. As the poster above states watch out for the forthcoming avalanche.To bad the president does not have a working group on financial markets that protects the little guy.

[F430murci]

US stocks surged because the money printing addicted economy got a promise of another fix of phantom money. This exact same thing happened in October 2014 when Fed governer James Bullard hinted that there could be more QE coming as the market was crashing.

But today, it was Fed mouthpiece Bill Dudley that did the deed.

DUDLEY: CASE FOR SEPT RATE HIKE LESS COMPELLING

You just hate to see the US do well in any category. Dudley did not say their was going to be any new rounds of QE. He just alluded the fact that the interest rate hike may be put off another month to October. His comments were timely, not emergent, given the annual meeting of central bankers taking place today.

The market swung wildly this entire week even before comments about interest rates. A lot of people took profits and perhaps were jumping back in to get good deals. I did same and was actually hoping for more of a drop before a bounce back.

The rise will likely continue today given the 2nd quarter growth figures coming out today and other data such as unemployment filings are expected to be positive today.

[F430murci]

US stocks surged because the money printing addicted economy got a promise of another fix of phantom money. This exact same thing happened in October 2014 when Fed governer James Bullard hinted that there could be more QE coming as the market was crashing.

But today, it was Fed mouthpiece Bill Dudley that did the deed.

DUDLEY: CASE FOR SEPT RATE HIKE LESS COMPELLING

340 up. How am smart are you?

[Harsh Jones]

US stocks surged because the money printing addicted economy got a promise of another fix of phantom money. This exact same thing happened in October 2014 when Fed governer James Bullard hinted that there could be more QE coming as the market was crashing.

But today, it was Fed mouthpiece Bill Dudley that did the deed.

DUDLEY: CASE FOR SEPT RATE HIKE LESS COMPELLING

You just hate to see the US do well in any category. Dudley did not say their was going to be any new rounds of QE. He just alluded the fact that the interest rate hike may be put off another month to October. His comments were timely, not emergent, given the annual meeting of central bankers taking place today.

The market swung wildly this entire week even before comments about interest rates. A lot of people took profits and perhaps were jumping back in to get good deals. I did same and was actually hoping for more of a drop before a bounce back.

The rise will likely continue today given the 2nd quarter growth figures coming out today and other data such as unemployment filings are expected to be positive today.

Ride the Bullard ! Now ride the Dudley !

yeeehaw

[Harsh Jones]

US stocks surged because the money printing addicted economy got a promise of another fix of phantom money. This exact same thing happened in October 2014 when Fed governer James Bullard hinted that there could be more QE coming as the market was crashing.

But today, it was Fed mouthpiece Bill Dudley that did the deed.

DUDLEY: CASE FOR SEPT RATE HIKE LESS COMPELLING

340 up. How am smart are you?

I said there would be a rally. Because of Dudley hinted at another shot of monetary heroine. Or at least the weaning is being postponed.

Speaking of when the Fed is going to postpone rates, look at this.

Economist survey: Fed won't raise interest rates until 2012 ...

money.cnn.com/2010/12/23/news/.../economists_survey_fed_outlook/

Dec 23, 2010 - CNNMoney's survey of leading economists shows split on whether Federal Reserve is helping the economy, but agreement that it will stay the ...

Federal Reserve lays groundwork for first interest rate hike ...

www.washingtonpost.com/.../fed-changes-guidance-on-short-term-interest-...

Mar 19, 2014 - A survey of Fed officials released Wednesday suggested that after the first hike, interest rates could rise more quickly than previously expected.

So the Fed has been hood winking this market for years upon years. And fooling people for almost a decade. So people like me have to invest on the continued mental inadequacies of other people.

[cheeryble]

The Chinese cut interest rates just now, and weakened their currency.

They stupid too?

Anyone who thinks markets aren't going to have pullbacks is in lulu land.

The big picture is the energy and desire for progress of billions of people drive the charts in at the bottom left and out the top right as the decades go by.

Even the 2008 ."end of the world" mess looks like a bump in the road now.

Doom mongers would better complain about inequality and with specifics rusher than proclamations.

Edited August 28, 2015 by cheeryble

[Harsh Jones]

The Chinese cut interest rates just now, and weakened their currency.

They stupid too?

Anyone who thinks markets aren't going to have pullbacks is in lulu land.

The big picture is the energy and desire for progress of billions of people drive the charts in at the bottom left and out the top right as the decades go by.

Even the 2008 ."end of the world" mess looks like a bump in the road now.

Doom mongers would better complain about inequality and with specifics rusher than proclamations.

The Chinese are keynesians. That is why they weakened.

And this is why countries can never abstain from money printing in the face of market contraction. Because with a good dose of propaganda , it lasts just long enough that it seems like it works. Its a good thing none of us have to work anymore. Because the govt can all mail us checks and we can go get the things we need.

you see, if it works a little, then it would have to work a lot.

But go ahead and believe the fallacy. Go ahead and believe the govt when they tell you that getting water out of the deep end of the pool and dumping it in the shallow end is going to make the water level rise.

[thaibeachlovers]

What has really happened is that the mugs that thought the stock market wasn't gambling have lost everything and the stocks they used to own are now in the hands of the big traders, so the value can be allowed to rise again.

The stock market is just gambling, and the "house" always wins.

[Harsh Jones]

So the US stock market had its withdrawal tantrum earlier in the week and Dudley insinuated that the monetary heroin will keep coming.

Stocks met some hard resistance later in the week so Im not so sure that this thing is going higher.

[cheeryble]

Stocks met some hard resistance later in the week so Im not so sure that this thing is going higher.

If you have moments when you ARE sure about a market move please tell us immediately.

[Harsh Jones]

Stocks met some hard resistance later in the week so Im not so sure that this thing is going higher.

If you have moments when you ARE sure about a market move please tell us immediately.

No crystal ball here. Not looking like a good start of the week for US stocks. Might not get much mileage out of Dudley.

Next up

Probably Hilsenrath

Edited September 1, 2015 by Harsh Jones