DJIA's 125-Point Rally Can't Erase Steep Weekly Loss

Western bourses rebound sets Asian markets tone for next week

German Euro Bail Out Package Relief & Stabilise Trading Sentiments

Western stock markets bounced off a rocky start, with signs emerging that the recent flight from risk is starting to abate.

Many industrial commodities rallied as bargain hunters gambled that the recent financial turmoil and fiscal troubles in the eurozone would not derail global growth.
The euro is sharply higher, buoyed by short covering and news the German parliament had voted through the eurozone’s €750bn bail-out package.

Wall St >>> The bulls won the day, but lost the week

At first, it looked like stocks would end the week on a uniformly dismal note, with the major market indexes sinking right out of the gate. However, equities clawed their way onto positive ground by midday, as the passage of financial reform legislation by the Senate effectively eliminated a major source of uncertainty for investors. As a result, banking issues helped lead the charge higher, and the CBOE Market Volatility Index (VIX) quickly retreated from its new annual high of 48.20. The market's gains were relatively modest throughout most of the session -- with euro-zone concerns still looming large -- but a final buying push propelled the Dow to a triple-digit gain. Along the way, the VIX stumbled to a daily loss of 12.1%, settling narrowly above the 40 level.

The Dow Jones Industrial Average (DJIA – 10,193.39) tacked on 125.4 points, or 1.3%, as 28 of its 30 components closed higher. JPMorgan Chase blazed the path higher with a gain of nearly 6%, while Bank of America added 4.5%. Meanwhile, Microsoft and AT&T were the Dow's only decliners. The index's lows were supported by its 50-week moving average, while the 10,200 neighborhood capped the Dow's intraday progress.

On a weekly basis, the blue-chip barometer shed 4%.

The S&P 500 Index (SPX – 1,087.69) also ended the week with a rally, wrapping up the session on a gain of 16.1 points, or 1.5%. However, the SPX's positive momentum was halted twice today near the 1,090 region.

Finally, the Nasdaq Composite (COMP – 2,229.04) one-upped its peers by reclaiming a foothold above its 200-day moving average, ending the session up 25 points, or 1.1%. The SPX gave up 4.2% for the week, while the COMP tumbled more than 5%.

ZLBT wishes all visitors

HAPPY WEEKEND

Plus an even happier Monday

For FKLI LONG Position Holders

:D