GO
Loading...

Oil, Wal-Mart Among Reasons For Rally

Tuesday, 13 Nov 2007 | 4:37 PM ET

Why the rally? Let me count the ways:

1) Stocks oversold (financials in particular over-shorted).
2) Oil drops(helping overall market).
3) Wal-Mart does not lower guidance for the fourth quarter (retailers rally).
4) Sept. pending home sales, a measure of contract signings of existing homes, rose a better than expected .2% vs expectations of a drop of 2%. 5) Banks and brokers, speaking at the Merrill Lynch conference, generally reported good news.

The last point is key. Jamie Dimon at JP Morgan said "We're fine" on CDOs and subprime exposure, B of A's CFO said losses in mortgages were "manageable," and Goldman Sachs CEO said there would be no significant asset write-downs.

Tomorrow: can Macy's follow through with Wal-Mart and affirm its Q4 guidance?


Questions? Comments? tradertalk@cnbc.com

  Price   Change %Change
M
---
WMT
---

Featured

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street

  • New York Attorney General Eric Schneiderman

    The New York attorney general's office has subpoenaed about a half-dozen high-frequency trading firms, a source told CNBC.

  • China's Weibo has priced its initial public offering at $17 per American Depository Share, at the bottom of its planned range.

  • Some high profile earnings beats by General Electric, Pepsico and Morgan Stanley helped counterbalance the hangover of Wednesday's big tech earnings misses.