Good Rally Today But Will Tomorrow Bring Buying Investors?
Stocks staged a convincing comeback today, despite doubts about the validity of the rally due to the bond market being closed.
There was an attempt to sell off the market right after the open, but once the terms of the Morgan Stanley-Mitsubishi deal came out just prior to 10 am ET the credit default swap market improved and the market turned around, never to look back.
We appear to have had a rare 90 percent upside day, where 90 percent of the volume was to the upside, and 90 percent of stocks to the upside.
The Dow has moved nearly 1,500 points from its Friday intraday low of 7882. A 11.1 percent gain would make this the 5th biggest day ever, the largest gain since 1933. It was the 4th biggest percentage gain for the S&P 500.
The big issue is tomorrow: will retail investors will be buying into the 9,300-9,600 level that professionals will be selling at?
The biggest gainers today were energy stocks, up 14 percent as a group, but many commodity stocks were also up in double digit territory, including Alcoa ,US Steel ,Nucor , and Freeport-McMoran .
Financials had a split personality: Morgan Stanleywas again the stock of the day, up 85 percent, and beaten-up insurance stocks like Prudential and Genworth rallied big.
Most other banks were up mid-single digits, but a small but persistent group of regional bank stocks again were in negative territory: Huntington Bancshares, Zions , Regions Financial , Sovereign(despite Banco Santander negotiations) and Comerica . We are likely to hear more announcement of mergers in the near future.
New from CNBC.com:
Questions? Comments? email@example.com