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Wednesday, February 10, 2010


Rescue Rally >>> EU Financial Aids For Debt Strapped Neighbours; Dow Reclaims 10K Level
After breaching the benchmark 10,000 level on Monday, the Dow Jones Industrial Average (DJIA) had no trouble luring bargain-hunters back to the market today. The bulls were encouraged by the prospect of a potential bailout for debt-strapped Greece, with Financial Times Deutschland reporting that Germany is working on an aid package for its euro zone neighbor.

By the close, the Dow Jones Industrial Average (DJIA – 10,058.64) was back above the critical 10,000 level, finishing with a gain of 150.25 points, or 1.5%.

The S&P 500 Index (SPX – 1,070.52) followed suit with a gain of 13.8 points, or 1.3%, but also found its upward progress capped by its 10-day trendline.

Finally, the Nasdaq Composite (COMP – 2,150.87) tacked on 24.8 points, or 1.2%, to join in the day's rally. Today marks the COMP's first finish above the 2,150 level since Feb. 3.

Optimism over a possible rescue for Greece helped lower the cost of insuring the debt of slow-growing European nations, boosted Greece’s bond prices and sent the euro and commodities surging.

Thanks to the currency fluctuations, crude jumped $1.86 a barrel, or 2.59%, to $73.75. Gold gained $11 a troy ounce, or 1.03%, to $1076.70.

The rescue reports returned the Dow to five-digit territory after the benchmark index closed below the psychologically-important 10000 level on Monday for the first time in three months amid fears Europe's debt problems will infect the global economy.

“We went from capitulation to euphoria in 24 hrs,” said NYSE trader Ted Weisberg of Seaport Securities. “You see this kind of volatility when you get downdrafts in the market >>> Anybody who says they have this figured out is a whole lot smarter than many of us.”

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