Day Traders Diary
10/4/11U.S. stocks stumbled at Tuesday's start, with the major indexes down for a third session and the S&P 500 Index entering bear market territory, off 20% from its April 29th high. Europe's debt debacle continued to rattle investors' nerves. The Dow Jones Industrial Average fell 139 points to 10,515. The S&P 500 dropped 12 points to 1,086. The Nasdaq Composite Index shed 18 points to 2,317. More selling to greet investors as hopefully we're entering the last phase of this bear market correction. The news is quiet this morning as upgrades and downgrades really won't help in this market. The selling is broad based, but there are some stocks showing some life. In the tech space Cisco, Intel, Microsoft, and Research in Motion are modestly higher. In the financial space, Bank of America and Morgan Stanley keep sinking, but JP Morgan and Wells Fargo are holding up much better. Hartford Insurance is modestly higher. In the commodity space, Cliffs Natural Resources is higher, but that's about it. Alcoa is down 3% after getting their estimates cut. Through the first hour the averages pushed lower only to rebound. Through the morning the Dow sold back off falling nearly 250 points before rebounding. Entering the lunch hour the Nasdaq moved into the green led by Cisco, Intel, Microsoft, and Apple. More commodities moved into the green thanks to a falling US dollar. JP Morgan is up a percent, but that's about it in the financials. In the afternoon the rally fizzled. Through the afternoon the Dow fell back by 200 points while the Nasdaq dropped 37 points. Today looked like a perfect turnaround day, but it isn't materializing. In the last hour the averages drifted lower only to finally, finally catch a bid. The Dow jumped a quick 50 points followed by the Nasdaq getting back to the unchanged level. The Nasdaq moved into the green trying to drag the Dow with it. Then in the last 15 minutes the bears gave up as the rally accelerated to the upside. Finally a rally we can enjoy. Into the close the Dow jumped 355 points in 45 minutes while the Nasdaq jumped 100 points. Nice rally. The Dow Jones Industrial Average finished up 153 points, or 1.4%, at 10,808, led by J.P. Morgan Chase up 6.6%. The S&P 500 (SPX) closed up 24 points, or 2.3%, at 1,123, led by a 4.1% rally in financials. The Nasdaq Composite added 68 points, or 3%, to 2,404.
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