An otherwise boring session ends with a bang as the Dow Jones Industrial Average (DJIA) surges 494 points. A look to the intraday chart shows the bulk of the boom hit in the last hour. That was just about the time the headlines were abuzz with word that President-elect Obama would nominate Timothy Geithner for the Treasury position.
The sector view is a sea of buying with the Amex Gold Bugs Index (HUI) surging 27%. No that isn't a typo. And yes, this is the same group I expressed some concern on earlier. Oil-related stocks were also strong as the Oil Service HOLDRS (OIH), Oil & Gas Index (XOI), and Natural Gas Index (XNG) showed gains beginning near 10%. The Amex Biotech Index (BTK), SPDR Homebuilders (XHB), and Regional Bank HOLDRS (RKH) were the laggards, along with the iShares Treasury Bond (TLT).
All in all, the day was dominated by widespread buying with most groups gaining ground and the broad market indices all advancing at least 5%. However, the Dow Jones Industrial Average (DJIA), S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) still ended the week with a loss. So, while today was a good sign, we need to see more signs of sustained buying next week. And that is where I will pick up on Monday. Have a great weekend!
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
800.0 |
47.6 points |
6.32 percent |
| Dow Jones Industrial Average (DJIA) |
8046.4 |
494 points |
6.54 percent |
| Nasdaq Composite (COMP) |
1384.3 |
68.2 points |
5.18 percent |
| Russell 2000 (RUT) |
406.5 |
21.2 points |
5.51 percent |
| CBOE Market Volatility Index (VIX) |
72.67 |
-8.19 points |
-10.1 percent |
Charts Courtesy of Thomson Financial
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