Tuesday, September 27, 2011

Bulls Storm Wall Street; Stocks Soar

From Fox Business: The Dow soared more than 250 points in afternoon on trade on Tuesday, rallying for a second-straight day, as traders scooped up beaten down shares amid hopes European officials would move to cool down the region's sovereign debt crisis.
As of 1:20 p.m. ET, the Dow Jones Industrial Average jumped 279 points, or 2.5%, to 11,323, the S&P 500 soared 27.2 points, or 2.3%, to 1,190 and the Nasdaq Composite rose 60.1 points, or 2.4%, to 2,577.

The rally was broad, but energy and financial issues performed the best by a wide margin, with blue chips like JPMorgan Chase (JPM: 32.33, +0.68, +2.15%) and Chevron (CVX: 94.97, +3.48, +3.80%) rallying. Volatility, meanwhile, plunged 9%, as tracked by the VIX index.

Additionally, traders were buying up stocks that took some of the most intense selling last week. Indeed, three top-performing blue chips, Caterpillar (CAT: 79.32, +2.47, +3.21%), Disney (DIS: 31.53, +1.23, +4.06%) and Hewlett-Packard (HPQ: 24.30, +1.60, +7.02%), have hit 52-week lows in the past week.

The yield on the 10-year Treasury, which repeatedly touched historic lows amid the intense turmoil last week, has climbed in a sign of the return to riskier equity and commodities markets. The benchmark bond recently yielded 1.988%, up from 1.905%, and in the range leading up to the Federal Reserve's monetary policy decision last week.
Worries that Greece may default on its debt, sparking a chain of events that could put pressure on other countries, and the euro zone's financial system, roiled the markets last week.

However, Greece's parliament is expected to vote on Tuesday on the last part of its austerity measures, a property tax that has been highly unpopular, but is crucial for securing a much-needed aid tranch next month. Officials from the European Union and International Monetary Fund have also broadly signaled that they are ready to take action to continue quelling the crisis….

Read more at http://www.foxbusiness.com/investing/2011/09/27/bulls-storm-wall-street-stocks-soar-for-second-day/

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