Day Traders Diary
11/13/2008U.S. stocks open higher even as the economic news gets worse. Germany declared they are in a recession. The Russian market was halted for the third straight day. Unemployment claims keep rising here in the U.S. while tech blue chip Intel lowered guidance last night. The Dow Jones Industrial Average gained 102 points to 8,385. The S&P 500 rose 12 points to 864, while the Nasdaq Composite climbed 12 points to 1,511. Intel is down 2% as hopefully most of the bad news is in the stock. The company has $10 billion in cash after subtracting the long term debt and has a monopoly on their industry. None of the earnings look very good this morning. Shoemaker, Croc's is down 55% after reporting a loss. Retailer, Charlotte Russe is down 8% after missing estimates. Fortress Investment is down 3% after missing estimates by 14 cents. Urban Outfitters is down 5% on in line earnings. Dr. Pepper Snapple is down 10% as earnings plunged. Walmart is modestly lower on earnings. It only took the market 20 minutes to go negative. Many of the financials are making new lows. The commodities are in the green. After the first hour the averages were back in the green. The Dow was up 100 points. The Nasdaq was up just 4 points. But the rally didn't last. The averages moved lower as Citigroup fell below $9 a share. GE fell below $15 a share. Speaking of GE, the company sparked a small rebound when the CEO bought 50,000 shares and stated no cut in the dividend. During the lunch hour the averages remained in the red. No buyers. The Dow fell over 300 points below 8000 once again before rebounding. The Nasdaq declined 70 points before rebounding. There are 449 new lows today. GE is trying to rebound as another insider purchased 50,000 shares. Citigroup is trying to rebound as they talk at a Sandler O'Neill conference. President Bush is speaking. For once the market rallied as the President spoke. Entering the last hour the Dow
was up 200 points. The Nasdaq rose 47 points. In the last hour, two words, blast off. The Dow Jones Industrial Average climbed 552 points, or 6.7%, to finish at 8,835. The S&P 500 gained 58 points, or 6.9%, to 911 while the Nasdaq Composite surged 97 points, or 6.5%, to settle at 1,596.
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