Stocks extend the rally

[Soylent Brice]

Source: CNN Money

Last Updated: April 2, 2009: 1:55 PM ET

NEW YORK (CNNMoney.com) -- Stocks rallied Thursday afternoon after regulators agreed to change a key accounting rule to give banks greater leeway in how they value bad assets.

The G-20 meeting of the world's leading economies was also on the radar.

The Dow Jones industrial average (INDU) rose 240 points or 3.1%, with 2-1/4 hours left in the session. The Dow had risen as much as 314 points during the afternoon, topping 8,000 for the first time during a session since Feb. 9.

The S&P 500 (SPX) index gained 24 points, or 3%. The Nasdaq composite (COMP) added 50 points, or 3%.


Read more: http://money.cnn.com/2009/04/02/markets/markets_newyork/index.htm?postversion=2009040211

[On the Road]

1. It Would be Excellent if this is an Indication

that the economy has bottomed. But up days during around the turn of the month are so common that they don't really indicate anything by themselves.

[Soylent Brice]

2. i just thought it was interesting to see that we hit 8,000 again, even if only briefly.

[MercutioATC]

5. It would be excellent if we had some hard numbers that justified this rally.

Market performance does not directly track the performance of the general economy, but there IS a correlation.

There's absolutely no reason for this surge in the market, and I don't have the cajones to play the dips and spikes. The overall picture has not changed. It's grim.

[Soylent Brice]

6. i 'm sure you're right, but i thought it was interesting to say the least.

i too am curious as to the why...

[On the Road]

8. We Just Don't Know Yet

The market tends to rise before the public has figured a recession has bottomed. In 1982 the market skyrocketed while economic news was still pretty bad.

One thing that helps -- the sense of panic that started in mid-September has certainly subsided.

[MercutioATC]

9. Just wait...

...the worst is yet to come...

[On the Road]

11. That is the Kind of Market Sentiment

that tends to preced bull markets. It preceded this rally, too.

[MercutioATC]

12. We shall see.

If anybody can convince me that this rally is based on anything substantive, I'll review my position.

[Skink]

3. The market seems to be at realistic levels now.

[TheWatcher]

10. You have to be kidding me.

[Uben]

4. The republican budget proposal is the reason it's up

People liked the republican budget so much that it has spiked ther market! See, we really do need lots more tax cuts for the extremely wealthy. It's the only way!





/sarcasm

[CoffeeCat]

7. You just have to wonder who and what is driving...

...these highs and lows?

Is this mainly institutional investors?

It just doesn't seem likely that the average Joe--who has lost half of his retirement--is spending
a lot of time dabbling in the market.

I wish someone could answer this question.
f
As for the banks now being allowed to value bad assets--we'll see banks releasing "hot air" numbers in the next
quarter. Banks get to do this starting April 1. So, maybe many are anticipating gains in the banking sector.

The good numbers coming out of the banks at the end of Q2, will be a load of hot air though. If a person timed this
right and shorted the banks, you could make a killing.

I still can't believe that the banks get to determine the value of these toxic assets. Oh hello...we're sitting
on a truckload of rotten hamburger, but we're going to value it at t-bone prices--and then sell it to the government
with taxpayer dollars at those outrageous prices--that WE set. Outrageous beyond measure.

[sarcasmo]

13. Jump in suckers.