Wall Street Bulls Hit Back
After dropping 100 points out of the gate, the Dow Jones Industrial Average (DJIA) performed an about-face, blazing a steady path higher in afternoon trading. Early on, slower-than-expected growth in China, as well as a jeopardized triple-A credit rating for France, weighed on the bulls. However, celebrated earnings reports in the banking sector -- primarily those of Goldman Sachs (GS) and Bank of America (BAC) -- helped stocks climb out of the hole, as did solid sentiment data on the housing front. Furthermore, a round of media reports touting France and Germany's agreement to bolster the euro-zone rescue fund added fuel to the bulls' late-session fire, helping the DJIA to a 180-point lead by the closing bell.
After falling as low as 11,296 in intraday action, the Dow Jones Industrial Average (DJIA – 11,577.05) climbed to a gain of 180.05 points, or 1.6%. Only IBM Corp. (IBM) and Coca-Cola (KO) ended lower, succumbing to earnings-related losses of 4.1% and 0.4%, respectively. Meanwhile, Bank of America paced the advancing blue chips with a gain of more than 10.1%.
Jump Not The Gun
OK, so Tuesday's profit takings were a little overdone but that cannot be construe as a reason for a total sentiments reversal. Those who SHORTED the FKLI at of before the close will be having a tensed & pent-up trading day.
GOODLUCK2ALL
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