Bulls Hit Back Hard--(Worst Economy Since.....)

TheStreet.com ^ | 12/1/2005 | Robert Holmes

[misterrob]

Stocks were jumping Thursday as bulls looked to revive the momentum that waned at the end of an otherwise blowout November.

The Dow Jones Industrial Average was climbing 124 points, or 1.1%, to 10,929, and is now just 11 points below its four-year closing high of 10,940 -- a level that's been approached but proven tough to breach in recent sessions. The S&P 500 was up 14 points, or 1.2%, at 1264. The Nasdaq Composite was adding 33 points, or 1.5%, to 2265.

Of the Dow's components, 27 out of 30 were posting gains. McDonald's (MCD:NYSE - news - research - Cramer's Take) was the Dow's best performer, up 3.6%.

"It appears investors who have missed out on the rally for the last month fear missing a year-end advance," said Michael Sheldon, chief market strategist with Spencer Clark. (The case for a big December was laid out by TheStreet.com's Nick Godt last night.)

The 10-year Treasury was down 10/32 in price to yield 4.53%. The dollar rose against the euro after the European Central Bank initiated its first rate hike in more than five years. The ECB raised interest rates by a quarter-point to 2.25%, an attempt to prevent higher oil prices from affecting wage inflation. The dollar was also higher against the yen.

Gold was back above $500 an ounce, lately rising $7.70, to $506.40. Oil was higher after bouncing late Wednesday, with the January crude contract recently adding 33 cents to $57.65. An Energy Department report yesterday showed a steeper-than-expected drawdown in U.S. crude inventories last week but a healthy build in fuels that include heating oil.

The Institute for Supply Management's manufacturing survey fell to 58.1 for November. The survey was expected to show a decline to 57.8 after a reading of 59.1 in October.

[misterrob]

Do I hear 11,000 Dow by year end????

[philsfan24]

how bout end next week?

[eyespysomething]

before Christmas, but it will drop back below 11,000 by the end of the year.

But just below it, it will then pass 11,000 after the new year for the meantime (barring unforseen events).

[RexBeach]

At this rate, we will be over 11,000 on the Dow by tomorrow. By the end of the year? Most certainly. We've been in a trading range for nearly 5 years. Time to breakout!

But, remember, the economy is producing a lot of jobs - but what kind of jobs? Does that sound familiar? It should. The Democrats have been hitting that key for years, and they have been wrong incessantly.

How can they hate Bush so much? I don't think the Pubbies hated "Bubba" this much. Did they? Nah.

[misterrob]

The market makes no sense some days. Oil prices drop and suddenly the market tanks due to concerns about how it will affect oil profits. Good jobs report and the market tanks even though more people are working and spending on goods and services.

Lower oil prices will make for better earnings this quarter. A decent retail season will also help.

What I am curious about will be the jobs report that comes out tomorrow. Will it break 200K with upward revisions for the last few months? Too many jobs and rate hike fears emerge. Too few and we are slowing down.

&%$^$#^$&(%(*%

[Paradox]

How can they hate Bush so much? I don't think the Pubbies hated "Bubba" this much. Did they? Nah.

There was alot of hatred for BJC, but for the most part, the rabid hatred of him was relegated to a fringe of the conservative movement. I was never comfortable with that hatred, as expressed here and elsewhere. But as bad as it got, it was no where NEAR as bad as the hatred for W is today. Not just that, but the Haters are at the forefront of the Liberal movement.

[farlander]

Boooyah!

Take that, communists!

[Sometimes A River]

The stock market rarely rises or falls on a days news or events.

Of course, whenever someone at Faux or CNN reports what happened with the Dow on a particular day, they always give an explanation on why it went up or down.

And that explanation is rarely, if ever, based on fact.

That's why it makes little sense sometimes...because the reporters report gibberish.

[Brilliant]

"The 10-year Treasury was down 10/32 in price to yield 4.53%."



Not good. I think the Fed may be giving it a bit too much gas.

[lawdude]

"The market makes no sense some days. Oil prices drop and suddenly the market tanks due to concerns about how it will affect oil profits. Good jobs report and the market tanks even though more people are working and spending on goods and services. "

What is your definition of a "tanking" market? The damn Dow is higher than it has been in 4+ years.

[clamper1797]

I don't think the Pubbies hated "Bubba" this much

I never "hated" Klintoon ... I just wanted he and his ilk permanently out of power

[mobyss]

The media is doing its best to maintain a "recession" mentality during Bush's terms in office. They've actually done well with their spin, since every report on good economic news is countered with some sort of "not the right kind of jobs" or "the rich get richer" sort of liberal moaning and groaning.

But what is really happening is that the artificial media-led depression of the stock market makes this a great time to accumulate stocks, through a 401k or other means.

Once Bush is out of office (whether replaced by a Demo or a Repub), some of the media will let up on the "Hoover economy" BS and suddenly the markets will soar. In the scary case that Hillary wins, you'll see the Dow soar to 15,000 in a two years, because the WashPost, NYT, and others will cheer everything she does - and suddenly the "good times" will be here again. If a "maverick moderate" like McCain is in, expect almost the same thing. Only if another "right wing radical" like Bush wins will we continue to "be in a major recession/depression" - even when unemployment sits at 5%, inflation is under 1.5%, and GDP growth is over 4%, like it is RIGHT NOW.

You really have to wonder if rich big-city liberals really believe their own propaganda though - this economy is in great shape and there's lots of money to be made. Are they really all hunkering down survival-style with their money stuffed in their mattresses? I'm sure the Move.On people are, and they are missing out on a great buying opportunity. Maybe I'll sell them some stock in a few years when the markets are up 50% or more - like I did in 1998-99 after accumulating all through the 1980s and early 1990s.

Buy low, sell high to a liberal.

[lawdude]

"Of course, whenever someone at Faux or CNN reports what happened with the Dow on a particular day, they always give an explanation on why it went up or down."

The reporting on the Dow is why I am skeptical about the MSM.

Back during the Reagan years, I would hear a market report spot on the radio while coming home from work. One night I was listening and heard the 'reporter' state the Dow took a steep decline and was off 2 1/8 points. (this was back in the days of 1/8 point increments)

Anyway, the next day, the same reporter reporting on the same market stated that the Dow was up a fraction, closing up 10 1/2!!!!!

I haven't given the MSM any credibility since.

I quit listening to evening Gnus and network TV in the same year. I am a better, more informed person since!

[Sometimes A River]

Bottom line...they don't know what they're talking about when they try to explain a 30 point drop or a 50 point rise.

[GianniV]

This news will never be reported on any major network.

[groanup]

Of course, whenever someone at Faux or CNN reports what happened with the Dow on a particular day, they always give an explanation on why it went up or down.

lol. The market goes up on "bargain hunting" and down on "profit taking". That's all you have to do. Ain't it easy?

As for CNN and Faux, "A fool and his money were lucky to get together."

[misterrob]

I've seen drops of 100 point in a day for reasons people forget about in a day or two.

[bray]

Imagine what it would be doing if we didn't have all those Stinking Mexicans stealing all of our jobs!!

Pray for W and Our Freedom Fighters

[Christian4Bush]

Do I hear 11,000 Dow by year end????

It seems that every time it gets close, we have a day where we get knocked back to 10,800 (as the other day). I'd like to see it, though.

[raisincane]

"How can they hate Bush so much? I don't think the Pubbies hated "Bubba" this much. Did they? Nah."


We were ashamed and sickened by Bubba, but we didn't hate him and berate his every single move and policy. The Dims are in constant tear down Bush mode. Even in our small town, the letters to the editor are terrible toward W.