Market sentiments improve on increased optimism about the government relief plan
US market gained back part of its losses on Tuesday, 30 September, 2008 after it incurred huge losses a day before after the $700 billion bailout plan had got rejected. The Dow had suffered its worst one day loss in twenty-one years yesterday. Market registered gains today on increased optimism that the government will reach an agreement on a financial relief plan before the end of the week. Couple of better than expected economic reports also helped stocks made a U turn today at Wall Street. All ten sectors ended in the green led by the financials and the energy sector.
The Dow Jones industrial Average ended the day with a gain of 485 points at 10,850. The Nasdaq Composite Index, finished higher by 98.6 points at 2,082.3. S&P 500 finished higher by 58.3 points at 1,164.74.
Among economic news of the day at Wall Street, the Conference Board reported on Tuesday, 30 September, 2008 that U.S. consumer confidence rose in September for the third straight month, even as consumers' assessment of the current economy plunged to the lowest level in 15 years. Lower energy prices were responsible for most of the improvement in the confidence index in September.
As per the report, the September consumer confidence index rose to 59.8 from a revised August reading of 58.5.The present situation index fell to 58.8 from 65.0 in August. That's the lowest since 1993. The expectations index rose to 60.5 from 54.1 in August.
It was also reported today that manufacturing in the Chicago region continued to expand in September. Regional manufacturing survey, Chicago PMI fell 1.2 to 56.7, which was better than the forecast of 53. A reading above 50 is intended to represent growth.
In another report, home prices retreated in major metro areas in the month of July, marking the 25th consecutive month of price declines. According to the S&P/Case-Shiller 20-City Composite, July prices were down 16.3% compared to last year and fell 0.9% from June.
At the crude market on Tuesday, crude oil prices managed to climb back to the $100 level but registered substantial losses for the third quarter that ended today. Prices rose today after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown. Crude-oil futures for light sweet crude for November delivery closed at $100.64/barrel (higher by $4.27 or 4.4%) on the New York Mercantile Exchange. Prices fell to a low of $97.8 during intra day trading. For the third quarter of the year that ended today, crude prices ended lower by 28%. This was the biggest quarterly drop since 1991.
At the currency markets on Tuesday, the dollar climbed the most ever against the 15-nation European currency as France and Belgium led a state-backed rescue of Dexia SA, the world's biggest lender to local governments. Major U.S. equity indexes rebounded from the worst plunge since October 1987 after lawmakers sought to repair a $700 billion financial rescue plan voted down yesterday.
For tomorrow, economic data will take center stage. September auto sales are expected to flow across the wires tomorrow. Providing a precursor for the government's official nonfarm payroll report, which is due later in the week, the September ADP employment report is due before market opens. Construction spending data for August and the September ISM Index are due simultaneously as soon as market opens followed by the crude inventories report.
US market gained back part of its losses on Tuesday, 30 September, 2008 after it incurred huge losses a day before after the $700 billion bailout plan had got rejected. The Dow had suffered its worst one day loss in twenty-one years yesterday. Market registered gains today on increased optimism that the government will reach an agreement on a financial relief plan before the end of the week. Couple of better than expected economic reports also helped stocks made a U turn today at Wall Street. All ten sectors ended in the green led by the financials and the energy sector.
The Dow Jones industrial Average ended the day with a gain of 485 points at 10,850. The Nasdaq Composite Index, finished higher by 98.6 points at 2,082.3. S&P 500 finished higher by 58.3 points at 1,164.74.
Among economic news of the day at Wall Street, the Conference Board reported on Tuesday, 30 September, 2008 that U.S. consumer confidence rose in September for the third straight month, even as consumers' assessment of the current economy plunged to the lowest level in 15 years. Lower energy prices were responsible for most of the improvement in the confidence index in September.
As per the report, the September consumer confidence index rose to 59.8 from a revised August reading of 58.5.The present situation index fell to 58.8 from 65.0 in August. That's the lowest since 1993. The expectations index rose to 60.5 from 54.1 in August.
It was also reported today that manufacturing in the Chicago region continued to expand in September. Regional manufacturing survey, Chicago PMI fell 1.2 to 56.7, which was better than the forecast of 53. A reading above 50 is intended to represent growth.
In another report, home prices retreated in major metro areas in the month of July, marking the 25th consecutive month of price declines. According to the S&P/Case-Shiller 20-City Composite, July prices were down 16.3% compared to last year and fell 0.9% from June.
At the crude market on Tuesday, crude oil prices managed to climb back to the $100 level but registered substantial losses for the third quarter that ended today. Prices rose today after U.S. lawmakers said they intend to salvage a $700 billion bank-rescue package that may avert an economic slowdown. Crude-oil futures for light sweet crude for November delivery closed at $100.64/barrel (higher by $4.27 or 4.4%) on the New York Mercantile Exchange. Prices fell to a low of $97.8 during intra day trading. For the third quarter of the year that ended today, crude prices ended lower by 28%. This was the biggest quarterly drop since 1991.
At the currency markets on Tuesday, the dollar climbed the most ever against the 15-nation European currency as France and Belgium led a state-backed rescue of Dexia SA, the world's biggest lender to local governments. Major U.S. equity indexes rebounded from the worst plunge since October 1987 after lawmakers sought to repair a $700 billion financial rescue plan voted down yesterday.
For tomorrow, economic data will take center stage. September auto sales are expected to flow across the wires tomorrow. Providing a precursor for the government's official nonfarm payroll report, which is due later in the week, the September ADP employment report is due before market opens. Construction spending data for August and the September ISM Index are due simultaneously as soon as market opens followed by the crude inventories report.
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