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Thursday, July 8, 2010

WALL ST. >>> Beaten-Down Dow Retakes 10000, Soars 275

Bulls Battle Back as DJIA Adds 275 Points, Defeats 10K
After weeks of gloom and doom on Wall Street, the Dow surged 275 points and recaptured the 10000 mark on Wednesday as the markets begin to look beyond recent crummy economic reports and focus on the start of earnings season.
The bulls came out swingin' this morning, with the Dow Jones Industrial Average (DJIA) boasting a triple-digit gain within the first 90 minutes of trading. Blazing the path into the black were financials, with State Street Corp. leading the charge in the wake of an inspirational outlook ahead of next week's unofficial start to earnings season. Meanwhile, energy issues like Chevron and Exxon Mobil added fuel to the bullish fire, as crude futures rallied on an upwardly revised demand forecast from the Energy Information Administration. In fact, even the beleaguered shares of BP plc got in on the positive price action, thanks to reports that Abu Dhabi's sovereign wealth fund is considering a sizable stake in the stock. Against this backdrop, the bulls retained the reins through the closing bell, with the blue-chip barometer reclaiming the 10,000 level to finish its best session since late May.

The Dow Jones Industrial Average (DJIA – 10,018.28) extended its lead throughout the session, eventually ending with an impressive gain of 275 points, or 2.8%. In fact, all 30 of the Dow's blue chips settled in the black, with Cisco Systems (CSCO) and JPMorgan Chase (JPM) paving the path higher. Thanks to today's triple-digit rally, the Dow ended the session north of the psychologically critical 10,000 level for the first time since June 28, and finished above its 10-day moving average for the first time since June 21.
The S&P 500 Index (SPX – 1,060.27) followed suit by tacking on 32.2 points, or 3.1%, powering past both the 1,040 level and its own 10-day trendline. Not to be outdone, the Nasdaq Composite (COMP – 2,159.47) advanced 65.6 points, or 3.1%, by the close. However, the tech-rich index failed to muscle back atop its 10-day moving average, which hasn't been surmounted on a daily closing basis since June 21.

Crude oil snapped a six-session losing streak ahead of tomorrow's domestic inventories reportCrude futures snapped a six-session losing streak today, notching their first finish atop the $74-per-barrel level in a week. Bolstering black gold was the Energy Information Administration (EIA), which upwardly revised its global oil demand forecast for 2010 and 2011. In addition, reports that China will spend $100 billion on energy-intensive projects – as well as expectations for tomorrow's weekly inventories data to show a significant contraction in domestic crude supplies – added to oil's momentum. Against this backdrop, crude oil for August delivery ended the day with a gain of $2.09, or 2.9%, at $74.07 per barrel.
Meanwhile, gold futures ended a volatile session in the black today, as buyers viewed the malleable metal's recent six-week low as a prime entry point to invest. Earlier in the session, gold explored the red after China's central bank said it wouldn't bolster its gold positions amid limited bullion supply and price volatility. Nevertheless, the precious metal battled back to finish with a gain of $3.80, or 0.3%, at $1,198.90 an ounce.

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