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Wednesday, September 29, 2010

WALL STREET >>> Bulls Rallies 46 points To Recoup Yesterday's Losses

DJIA on Buzzer-Beating Buying Spree

Stocks continued their trend of wishy-washy price action today, as investors mulled a mixed bag of data. Right out of the gate this morning, the bears took an early lead on the heels of a discouraging report from the Conference Board, which said that its consumer confidence index fell to a seven-month nadir of 48.5 in September, below economists' predictions.
In addition, a larger-than-anticipated rise in the S&P/Case-Shiller home price index garnered a somewhat muted response, as the figures still hinted at a relatively weak housing market. However, the scales eventually tipped in the bulls' favor, as the Street opted to turn lemons into lemonade. More specifically, stocks extended their lead in the final hour of trading, with investors hoping the day's disappointing data will translate into more stimulus measures from the Federal Reserve. Against this backdrop, the major market indexes resumed their September run higher, with the Dow Jones Industrial Average (DJIA) turning an 80-point deficit into a 46-point gain by the close.

"You have to hand it to the bulls," noted Senior Technical Strategist Ryan Detrick. "The way the market shook off the poor consumer confidence data was rather impressive." What's more, he adds, there could be even more upward momentum in store, as "the longer the S&P 500 Index consolidates its breakout atop 1,130, the more likely this rally will continue."

Thanks to an eleventh-hour buying spree, the Dow Jones Industrial Average (DJIA – 10,858.14) finished with a gain of 46.1 points, or 0.4%, to reclaim its short-lived perch atop the 10,850 level. Only eight of the Dow's 30 components ended in the red, with tech concern Cisco Systems (CSCO) leading the laggards, while Pfizer (PFE) paced the 22 advancing blue chips.
In similar fashion, the S&P 500 Index (SPX – 1,147.70) reversed early losses to end 5.5 points, or 0.5%, higher, though the index's upward trajectory was stopped short at the psychologically significant 1,150 level.
Meanwhile, the Nasdaq Composite (COMP – 2,379.59) added 9.8 points, or 0.4%, by the close, extending its month-to-date advance to an impressive 12.6%.

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