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Stock prices soared Monday, with market indexes rising to session highs in the final hour of trading as blue-chip issues clawed back some of the losses suffered in last week’s bloodbath. The Dow soared about 275 points, shooting back over 11,000.
The Dow Jones industrial average closed the trading day up 272.38 points, or 2.53 percent, to 11,043.86. The broader S&P 500 climbed 26.52, or 2.33 percent, to 1,165.95. The tech-heavy Nasdaq rallied out of negative territory to close up the day 33.46 points, or 1.35 percent, to 2,516.69.
Last week, the Dow tumbled 6.4 percent, its biggest drop since the week ended Oct. 10, 2008 -- the height of the financial crisis.
The market apparently was buoyed by optimism Monday that European finance ministers will take appropriate steps to prop up the region's unstable economies.
"The news leaking out of Europe is giving investors hope that the politicians and central bankers in Europe might be putting together a plan," Channing Smith, managing director of Capital Advisors Inc., told the Associated Press. "The devil's in the details."
According to The Associated Press:
European officials pledged over the weekend to take bolder steps to fight Europe's debt problems, which threaten to slow the global economy. The finance ministers offered few specifics about their next steps, but markets are sensitive to every piece of news coming out of the region.
"Perhaps it's just the fact that the talks didn't break down," said Jack Ablin, chief investment officer at Harris Private Bank.
European leaders have not been able to agree on the next steps they will take. German leaders want banks and private institutions that hold Greek bonds to take a bigger loss on those holdings to reduce Greece's debt burden. European officials have also talked about increasing the size of Europe's $595 billion rescue fund by allowing it to take loans from the European Central Bank.
Click here for the biggest gainers and losers of the day.
Neil Hennessy, The Hennessy Funds, and Peter Coleman, JMP Securities, discuss how investors should be positioning themselves as major averages rally on Monday.
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Soar today, plummet tomorrow.
*yawn*
Do you mean "sore" today? As in, those bankers foolish enough to throw good money after bad, need their collective asses kicked until they are good and sore.
I was watching the euro news this morning and they are practically guaranteeing a euro recession with the upcoming defaults. It really is a laugh at how the market operates.
Yep. Enjoy the view from the market top. It will be a fond memory soon. Stock prices are a bubble. We have not seen the bottom back in March 2009. Dividends, PE ratios will be starkly different at a true long term bottom:
www.kondratieffwavecycle.com/stock-market-big-picture/
Nothing has been fixed. Stimulus was borrowed from the future. Debt was the problem to begin with and we have more of it now. Borrowing and spending does not make a recovery. Soon interest payments on debt will be enough to kill any recovery as you know it. Deflationary crash is coming. Individuals, state, local, federal governments will not have disposable income left to spend. This is the mother of all crashes. 2008 was just the warmup.
Yep, they'll be a squeekin' and a freakin' on the next downhill ride. Get Greeced up and ready for Spainful sweet volatility.
NYSE is nothing but a casino.....
Despite the looming copy-cat crash of the '38 Crash in 2012, foolish or greedy investors are piling into the stock market. The death of the PIIGS will take many naive investors with them.
Hahahaha, morons.
Happy days are here again. All the problems of the global economy have been resolved. What a joke!
I can't even take the stock exchange seriously anymore. Somebody gets a cold and it crashes, somebody gets layed and it takes off. What a joke.
Wow and Wow again - Its time to investall of your money, available credit on your cards, hock your personal belongings, cash in your 401K and go for it today as it may be too late tomorrow. Thanks to the AP business media you will be a millionaire before you know it.
roflmao!
Sold-off my stocks, etfs & mutual funds back in January; let Wall Street eat their own.
Oh, Wall St. just soars & soars- it's back over the magical 11,000! Oh, what a difference a weekend makes!
Are you kidding me do they really believe that Greece is going to be able to repay that money?????? They are idiots!!!!! Look for gas to go up big time by tonight in the US people.
What really changed over the weekend? Nothing. The EU and the US are still in as much debt as before.
More than ever......
Wow, these guys are good. They always know EXACTLY what caused the market to go up or down, (and by how much, too??) AFTER the market has done whatever it did.
If there was only some way we could isolate all these market experts in two different rooms somewhere and feed one room the correct action of the market and feed the other room the wrong market action. What a revealing analysis that would provide
two steps forward, three steps back. That is how it shall be for the next 14 months.
The stocks-- skyrocketing and plummeting constantly lately. You know there's got to some insider out there making ridiculous profits.
tomorrow the dow will plumet
Why are you not reporting the protests!!!!!!
why are you ignoring climate change? Who will care about the DOW when we can't even breath the air or drink the water. More solar power!
200 people is a protest......
Glen Beck got 800,000 to show up in DC...
200? That is a very tiny and made up number. Just look at this recent video:
youtube.com/watch?v=2PiXDTK_CBY
This is a week after the protest started. It is still happening. Don't you think it's pretty scary that the news is so controlled that people like you think this is some tiny event with a few hundred people? And worse that so many people have no idea it's even happening.
Max, I agree with you 100%. Moreover, if these people are covering Wall St, they have got to be seeing what's happening below Wall St. This is a disgrace.
It seems like Wall Street and the media are addicted to cocaine. They go from high to low like an addict. If you invest money with them you deserve what you get!
Seriously , Greace is sunk anyone that things otherwise doesn't understand whats going on and these people should.
Greece's GDP is about the whole size of Dallas, TX and in the entire history of the country it has been in what I would consider default. Image a total unionized country from the janitors to the government. Big money, yes Warren Buffet are buying on these bottoms. It takes money to make money.
The only good thing happening on wall street is the brave youg people who are protesting the insane greed and usury that is destroying our country. Ametica is run by banks, wall street and big corporations. they own or government, the media and the minds of many.
If we don't stand up against this evil we will soon be in depression and chaos. We need 10 or 20 million in the streets with good leadership and specific demands. Our young people in NY are being attacked and surpressed by police offercers, the very ones that should be defending them.
God bless all who stand for freedom and a better way of life. Let's hope our police and military understand that the are part of the many that are being used for the few. Our military fired on protesting veterans in the 1920s. Hopefully they won't go agains thier own people when they rise up against this deadly greed and evil.
Uh, so what exactly are you proposing? "Class warfare"? Methinks you've been listening too much to Rush Limbaugh.For pennance, you must watch Jon Stewart - the Daily Show every evening this week.
Frank: Our 'brave' young people demonstrating against Wall Street all want the destruction of capitalism. If they were truly wanting change that didn't result in a collectivist, socialist/marxist governance I'd be all for them, alas, that is not the case.
ROFL! mygirl - turn off Fox News and take off your foil hat.
Capitalism is designed to bone you. There are more than two choices. It's not just Capitalism and Socialism.. there is an area in the middle where people actually use their brains.
Actually he isn't listening to Rush. He listens to Obama.
But since wall street backs Obama with donations do not expect much change now....
FrankMorton - spoken like an underachieving anarchist wannabe who drank the Kool-Aid... Go back to playing with your crayons and living in your mother's basement while us adults run the country...
There is an area in the middle where people actually use their brains
And that area is where, exactly? Amusing that you claim capitalism will bone you while making no such statements about socialism. You do know who was the one pushing for this Wall Street protest, don't you? Probably not, that would require more than a passing understanding of talking points. If you're referring to European socialism, that ain't working too well lately now is it? Think Germany? Guess you haven't paid attention to the widening gulf between rich and poor over there.
The only interest that Europe has in bailing Greece out is that they don't insure their banks and if Greece defaults all together the banks may very well fail. Which would cause a great deal of people in Europe to lose their life savings overnight. I'm surprised Europe isn't already experiencing a run on the banks by people that are smart enough to get their money out before they lose it to Greece's financial problems.
Ultimately, I agree with many of you that if anything they are just kicking the can down the road.
Now for the stock market I'd say that unless congress goes to OZ and picks up a brain FEMA is going to run out of money sometime this week and then the dookie will hit the fan. Expect another crash sometime mid-week. Unless, the USPS keels over first.
Where is the coverage on the Occupy Wallstreet protest?
It's there. You just have to look around for it. Why just today I heard a few jokes about it on the news.
Damnit! Who writes these foolish articles? First, we are not going into a double dip recession! It is NOT going to happen, and financial investment firms across the world know it! Second, the stock market today is 70% owned by High Frequency Traders who make MILLIONS and BILLIONS of dollars buying and selling in the markets at warp speed. Their computers are programmed to buy and sell stocks at 400 millionths of a second based on mathematical programs that have been designed by some of the most brilliant physicists available in the country. HFTs will proudly tell you that they LOVE a volatile market, and with 70% of the market under their control, it's going to remain volatile---and they're going to continue to become wealthier and wealthier. (TEA Party people be sure and make certain their tax rates are not raised, nor their tax loopholes closed.) Today's Dow is not not the Dow of even five years ago. It is not the place for small investors, and will not be for the foreseeable future.
Right! They were in there all day buying and selling, selling and buying.........to themselves! Then, 15 minutes before the closing bell (3:45pm est) a newswire breaks about a huge buy imbalance on the close (5,313,500 shares bought)in a particular large company, who happens to be tight with this administration and MSNBC, and the stock soars to new highs for the day................too bad the market doesn't close for another 15 minutes yet. Then on the closing bell (4:00pm est), the systems shows there's actually a sell imbalance of 184,800 shares.
Hmmm, the price rose by about 25 cents a share when that news hit and immediately dropped in after hours trade.
Can you say "pump and dump"
dam: Sorry, but I'm having trouble following you. Are you telling me High Frequency Traders don't exist, or that they're not important shakers and movers in today's markets, or what?
Damn tea party folks now own wall street and all big business... We also have millions of dollars laying around at our beck and call. Not to mention we control congress and Democrats just can't do anything with their 2/3 control....
Tea party members all pollute the environment and contribute to global warming. We also in our spare time attend KKK meetings and Nazi party meetings after church.
Did I miss anything?
http://www.nationalreview.com/articles/278069/obama-lies-about-do-nothing-congress-deroy-murdock
Soaring?
If I got a 2 percent raise I don't say my salary 'soared.'
This is called a roller coaster ride. Today they are happy and the coaster is going up the Hill but it seems on average of every ten days the market goes down the big Hill. I wouldn't bet the farm on these rallies. Until the President is changed and some sensibility is put back into the congress and government this will continue to be the norm for the markets.
What does changing the President have to do with anything?
It's because the wealthy are invested in these countries that Wall Street has a epileptic fit every time that one of them is rumored to default.
Glad I jumped back in on Friday. There were a lot of things down for no reason except contagion. At some point we will see 10,500 before the election. We will also see close to 14,000 after the election NO MATTER WHO WINS, including Obama, so buy carefully. But the street economy will not get better, I am certain. That's why I restructured my 401K in April 2009, and then was able to permanently stop working (except managing my 401K) in August 2009. The market is now a rich man's game in a way it hasn't been in about a century, and although I'm far from rich, following in their footsteps and learning to understand the psychology of the market no matter what you personally feel, will allow you to do well (which is a sad commentary on contemporary America).
And the secret of it all, is this - whether regarding money, love, commerce, or enjoying time with your dog: The world is not fair, but the world is predictable. In every sphere in which you expect fairness, you will find disappointment, bitterness, and be lucky to break even. In every sphere where you truly try to understand without judgement, you will eventually find success and at least a modicum of enjoyment.
CASH IS KING............The people "occupying wall street" with their protests are 100% correct! Bloomberg and his NYPD thugs need to be tossed in prison for what they're doing to those brave protestors!
Lets get this straight. Wall Street Stock Exchange plumments last week. Monday, every idiot out there see's they can get stock at a lower price and jumps in to buy as much as they can because the price is low, thinking they will be millionaires before the week ends. This creates an "artificial" rise in the stock market and gives the illusion that the economy is on the upswing. The buying frenzy levels off and starts to plumment and these same bobble-heads then call in to shift their money out or to some other commodity and the stock declines. Rinse and repeat. It is the perpetual "Homer Simpson Investment Model"!!!