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Friday, November 19, 2010

WALL STREET >>> GM, Ireland Awaken The Bulls

DJIA Adds 1.57% on Irish Optimism, GM Homecoming
Irish Eyes Are Smiling
Stocks spent the session basking in the black today, thanks to easing concerns about Irish debt, upbeat economic data and the celebrated homecoming of General Motors (GM) to Wall Street. More specifically, escalating expectations that debt-strapped Ireland would accept monetary help from its European neighbors sent stocks soaring right out of the gate, and GM's well received return to the New York Stock Exchange (NYSE) more than stoked the bullish flames. As such, a slimmer-than-anticipated jump in weekly jobless claims, as well as a dose of stronger-than-expected manufacturing data, was merely icing on the cake, with the major market indexes advancing more than 1.5% by the close.
The burst of buying allowed Wall Street to quickly recapture about half of the losses chalked up from the past week’s bearishness. The widespread rally was the markets’ best in two weeks.

The Dow Jones Industrial Average (DJIA – 11,181.23) maintained a triple-digit surplus throughout the session, finishing with a gain of 173.4 points, or 1.6%. In fact, 29 of the Dow's 30 blue chips ended higher, led by industrial issues Alcoa (AA) and Boeing (BA), while Intel Corp. (INTC) was the lone black sheep in the red. However, while today's impressive rally helped to offset most of the Dow's recent retreat, the blue chip barometer's upward trajectory ran into a roadblock in the 11,200 region – home to its 20-day moving average.

The S&P 500 Index (SPX – 1,196.69) followed the Dow's lead, advancing 18.1 points, or 1.5%. Nevertheless, the broad-market index ran out of steam in the 1,200 neighborhood – home to its own 20-day trendline.

In similar fashion, the Nasdaq Composite (COMP – 2,514.40) tacked on 38.4 points, or 1.6%, to reclaim its perch atop the 2,500 level. However, similar to its peers, the tech-rich COMP couldn't muster enough strength to conquer its 20-day moving average.

ANALYST QUOTE : “The market is shrugging off the concerns of the last several days and finally got tired of going down. The bulls decided to step on the gas pedal.”

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