dow sets record high ..past 1400 pts

[jameznyhc]

now if they only reduced spending the last 6 years we'd be in twice as good shape..but all in all bush economy will go down as one of the best periods for expansion,growth & gdp, home ownership, low interest rates, and new business's..

NEW YORK (AP) -- Wall Street began the fourth quarter with a huge rally Monday, sending the Dow Jones industrial average to a record close. Stocks were buoyed by a growing belief that the worst of the credit crisis has passed.
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The Dow rose 191.92, or 1.38 percent, to 14,087.55, surpassing its closing record of 14,000.41 set in mid-July. The blue chip index rose as high as 14,115.51 to eclipse its previous intraday high of 14,021.95 set July 17.

While the beginning of the new quarter was an incentive for institutional investors to buy, they also seemed to be motivated by a sense that banks and other financial companies generally weathered the recent credit market upheaval. Both Citigroup and Switzerland's UBS AG issued third-quarter profit warnings, but indicated the current period might see a return to normal earnings levels.

Meanwhile, the market was optimistic that new economic data might nudge the Federal Reserve toward another interest rate cut at its Oct. 30-31 meeting. The Institute for Supply Management said the manufacturing sector grew in September at the slowest pace in six months; the trade group said its index of manufacturing activity registered at 52.0 in September, below forecasts for a reading of at least 52.5.

"People are getting more confident there is going to be an October rate cut," said John C. Forelli, portfolio manager for Independence Investment. "To some degree, it looks like Citi kitchen-sinked the quarter, and that from here going forward will be calmer. That's underpinning the financials."

Enthusiasm about acquisition activity picked up after Nokia unveiled an $8.1 billion offer to buy navigation-software maker Navteq Corp. The deal was seen as a signal that corporations are feeling comfortable in making big moves despite recent market turbulence.

Broader market indexes also rose sharply. The Standard & Poor's 500 index rose 20.29, or 1.33 percent, to 1,547.04, nearing its all-time trading high of 1,555.90, also reached in mid-July. The Nasdaq composite index rose 39.49, or 1.46 percent, to 2,740.99; the tech-laden index remains well below its high of 5,048.62, reached in 2000 when it was bloated by the dot-com boom.

The Dow finished a turbulent third quarter with a 3.6 percent gain, after the Fed eased investor concerns over the credit and housing markets by lowering key interest rates half a percentage point.

Bonds moved higher Monday, with the yield on the benchmark 10-year Treasury note falling to 4.55 percent from 4.59 percent late Friday. Fixed-income investors, currently concerned about the dollar's recent weakness, interpreted the ISM report as not necessarily portending an interest rate cut, which would further erode the U.S. currency.

The dollar was mixed Monday against other major currencies, while gold prices rose.

A barrel of light, sweet crude fell $1.42 to $80.24 on the New York Mercantile Exchange. This extended last week's decline amid concerns that oil market fundamentals do not support recent high prices.

Arthur Hogan, chief market analyst at Jefferies & Co., said the biggest tipping point of the day was financial stocks. For the first time, Citi -- considered a barometer for the banking industry -- is giving some real numbers about the extent of its damage, he said.

"If they are giving us worst-case scenario, then market participants are feeling that most of the stuff we've worried about since July will remain contained," he said. "That's the celebration the market is putting on right now, and the take away is that the black hole of not knowing finally has some numbers around it."

Financial stocks -- from brokerages to retail banks -- slumped during the third quarter as uncertainty grew about the extent of losses from the credit and subprime mortgage turmoil. Comments from Citi Chief Executive Charles Prince that he expects to "return to a more normal earnings environment" during the fourth quarter put investors more at ease.

And, since analysts believe financials must lead a broader Wall Street advance, a rally in bank and brokerage stocks was greeted with enthusiasm. Citigroup shares rose $1.05, or 2.3 percent, to $47.72. Countrywide Financial Corp., the nation's largest home loan provider, rose 95 cents, or 5 percent, to $19.96 on the potential of an easing in subprime loan jitters.

UBS, the largest Swiss bank, rose $1.69, or 3.2 percent, to $54.94 after warning it would take a pretax loss of up to $690 million in the quarter and cut 1,500 jobs. Rival Credit Suisse Group rose $1.66, or 2.5 percent, to $67.99 after it said third-quarter profit will remain healthy despite stormy conditions.

Homebuilding stocks -- another group that has been hard hit in recent weeks -- spiked after several big players in the sector were upgraded by Citigroup. The report said large-cap builders with stronger balance sheets should benefit in the coming quarters.

Lennar Corp. rose 62 cents, or 2.7 percent, to $23.27; D.R. Horton Inc. added 65 cents, or 5.1 percent, to $13.46; and Pulte Homes Inc. was up $1.18, or 8.7 percent, at $14.79.

Hope that acquisition activity would rebound from a sluggish third quarter got a boost when Nokia said it would buy Navteq. The deal is the first announced during the fourth quarter. During the third quarter, there was $992.1 billion worth of deals during the third quarter -- down 43 percent from the second quarter, according to data tracker Dealogic.

Nokia rose 8 cents to $37.96, while Navteq fell $1.52, or 2 percent, to $76.45. The stocks of acquiring companies tend to fall after takeover announcements amid concerns that a deal might burden the purchaser with debt.

The Russell 2000 index of smaller companies was up 19.31, or 2.39 percent, at 824.76.

Advancing issues led decliners by a 3 to 1 basis on the New York Stock Exchange, where consolidated volume rose to 3.26 billion shares from 2.92 billion shares on Friday.

Overseas, Britain's FTSE 100 rose 0.61 percent, Germany's DAX index rose 0.77 percent, and France's CAC-40 added 1.01 percent. In Asia, Japan's Nikkei stock average closed up 0.36 percent, while the market was closed in Hong Kong for a holiday.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

[TheHipHopBillGates]

ashame theres a recession coming.

[jameznyhc]

ashame theres a recession coming.

you been saying that since i started posting here in 03 lol...theres no denying the economy must go in cycles to sustain and correct itself..but given we had 6 good years bush deserves alot of credit

[TheHipHopBillGates]

it's called a wartime economy, but it sets us up for future problems. and the 6 good years was inflated by a smoking mirrors housing market.

http://articles.moneycentral.msn.com...fButAWhen.aspx

http://articles.moneycentral.msn.com...erTheBoom.aspx

[jameznyhc]

housing market is starting its correction as we speak and thats a good thing ...

[TheHipHopBillGates]

housing market is starting its correction as we speak and thats a good thing ...

definitely, but you realize that the market & economy can't keep growing at the same time........oh and of course there is the fact that the dollar is weaker then its ever been. Go Bush.

[jameznyhc]

definitely, but you realize that the market & economy can't keep growing at the same time........oh and of course there is the fact that the dollar is weaker then its ever been. Go Bush.

theres a positive to a weak dollar...exports, foreign investment in america, tourism and gdp ..there will be a correction but we did have the market and economy grow for 6 years

[TheHipHopBillGates]

theres a positive to a weak dollar...exports, foreign investment in america, tourism and gdp ..there will be a correction but we did have the market and economy grow for 6 years

foreign control of america might be a more accurate word, pretty soon we'll all be working for foreign landlords. "China owns your mortgage"

[Benny B]

foreign control of america might be a more accurate word, pretty soon we'll all be working for foreign landlords. "China owns your mortgage"

jsut think if we went to war with china ever... all they would have to do to defeat us is stop producing goods.. this is why america as a country needs to look past making a buck and bring back making electronics / clothing / food from here in teh states.. we are beyond vulnerable with the current situation.

[TheHipHopBillGates]

jsut think if we went to war with china ever... all they would have to do to defeat us is stop producing goods.. this is why america as a country needs to look past making a buck and bring back making electronics / clothing / food from here in teh states.. we are beyond vulnerable with the current situation.

the fact is american society/culture is inflated, cheap land and labor are an after thought, the barriers to opportunity are closing, and american the growing economic disparity is killing the american dream, this empire might be headed towards collapse and it's sad, at least we have a lot of weapons, so we can still a lot of resources and not go down without a fight.

[drumaboy]

jsut think if we went to war with china ever... all they would have to do to defeat us is stop producing goods.. this is why america as a country needs to look past making a buck and bring back making electronics / clothing / food from here in teh states.. we are beyond vulnerable with the current situation.

look past making a buck?.......thats like asking the middle east to give up theocracy

oh and james, about your "growing economy"....for the first time ever, national savings is negative, mean salary figures have not gone up, what about soc sec, oh yeah, we just forgot that whole electoral issue, how many foreclosures, we import CRAP, and do NOTHING about it, meanwhile factory after factory here keeps closing, u say a weak dollar is good, for who? market's been up, oh a little, if you knew anything about the markets, youd know since bush weve basically stabilized and gone a little higher, pull up a chart during the clinton years, we saw the market jump up about 8000 points, stabilizing around 11000.....as far as bush weve only gained roughly 3000 points, look at the long term, our markets should be doing a hell of a lot better.....but still, an economy is more than just the stock markets

[jameznyhc]

look past making a buck?.......thats like asking the middle east to give up theocracy

oh and james, about your "growing economy"....for the first time ever, national savings is negative, mean salary figures have not gone up, what about soc sec, oh yeah, we just forgot that whole electoral issue, how many foreclosures, we import CRAP, and do NOTHING about it, meanwhile factory after factory here keeps closing, u say a weak dollar is good, for who? market's been up, oh a little, if you knew anything about the markets, youd know since bush weve basically stabilized and gone a little higher, pull up a chart during the clinton years, we saw the market jump up about 8000 points, stabilizing around 11000.....as far as bush weve only gained roughly 3000 points, look at the long term, our markets should be doing a hell of a lot better.....but still, an economy is more than just the stock markets

stabilizing at 11000 lol!!! the high was 11723 jan 14th 2000 ... the the tech bubble burst the dow fell from 11,723 to 7,286 it bottomed out oct 2002 one year after a recession doubled up by 9/11..the nasdaq went from 5000 to approx 1500 ... Since oct 02 to present under bush the market not only corrected it self by regaining pts..it went well past it..only this time we dont have overpriced hyped I.T. and internet tech stocks..under bush we regained 7000 pts ..thats half the fuckin market.. cant deny the numbers ..unemployment , home ownership ..the last few years been real good

as for factory workers people need to realize in america the manufacturing age has come and gone we have now entered a information technology age .. if you do become an unskilled entry level blue collar worker your going to have a very difficult time ..theres many resources.. time for people to realize industries come and go with evolution .. my first job in manhattan i was a messenger right out of high school great pay for entry level work with no skills, this was 1990...in 1991 the fax machine came real popular the entire industry was wiped out in 2 months ill never forget that..literally there was a messenger industry about 30 to 40,000 by the next year 5000 jobs were left ..

[metfan85]

housing market is starting its correction as we speak and thats a good thing ...

the housing market isnt reallt correcting itself, if all the fed did was drop the rate to fix itself, if they kept the rate where it was or raised it a bit and the irresponsible people who took out mortgages that shouldnt have foreclsed then the housing market would have corrected itself

[Defekted]

AND SAVING THE BEST ONE FOR LAST

[Gspot555]

lol, great thread

[jameznyhc]

lol, great thread

thats why i sold high last year suckers .. and now gret time for property buying .. a recession has what to do with bad paper??? and bad loans?? ...back then there wasnt one AT ALL ... but if you search i predicted one to happen the last 2 quarters .. if i didnt ill never post here again ..

[Gspot555]

james, its ok to say you are wrong once in a while...no one is going to laugh at you

[Defekted]

"stabilizing at 11000 lol!!! the high was 11723 jan 14th 2000 ... the the tech bubble burst the dow fell from 11,723 to 7,286 it bottomed out oct 2002 one year after a recession doubled up by 9/11..the nasdaq went from 5000 to approx 1500 ... Since oct 02 to present under bush the market not only corrected it self by regaining pts..it went well past it..only this time we dont have overpriced hyped I.T. and internet tech stocks..under bush we regained 7000 pts ..thats half the fuckin market.. cant deny the numbers ..unemployment , home ownership ..the last few years been real good"

Yes Jamez, totally vindicated.

[jameznyhc]

"stabilizing at 11000 lol!!! the high was 11723 jan 14th 2000 ... the the tech bubble burst the dow fell from 11,723 to 7,286 it bottomed out oct 2002 one year after a recession doubled up by 9/11..the nasdaq went from 5000 to approx 1500 ... Since oct 02 to present under bush the market not only corrected it self by regaining pts..it went well past it..only this time we dont have overpriced hyped I.T. and internet tech stocks..under bush we regained 7000 pts ..thats half the fuckin market.. cant deny the numbers ..unemployment , home ownership ..the last few years been real good"

Yes Jamez, totally vindicated.

totally ..thankyou .. cause the market is hurting from shit that went down in 77 ...again in 93 ...agajin in 99 ... anyone with a brain even clinton took that responsibility .. what school diid you come out of to not know these things??? if you sold last year .. property or stocks .. youd be so fuckin well off it would be nuts ..

i also didnt think a bailout was necessary like your frannie obama did .. let it correct itslef ..

[jameznyhc]

james, its ok to say you are wrong once in a while...no one is going to laugh at you

so the market wasnt at 14000 last year??? lol .. and we didnt have 6 years of growth?? lowest unemployment in decades .. huge exports? .. again i did great under bush .. if you had a brain so would have you .. but anyone and everyone agrees this was a bipartiansian failure going back decades ..