Day Traders Diary
11/10/2008U.S. stocks get a shot in the arm thanks to the announcement of a Chinese stimulus package worth more than $500 billion. The Dow Jones Industrial Average gained 204 points to 9,148. The S&P 500 rose 19 points to 950, while the Nasdaq Composite climbed 26 points to 1,673. Plenty of news hitting the markets this morning. First the bad news and there is plenty. Circuit City filed for Chapter 11. A REIT, American Capital is down 26% after suspending their dividend. Another REIT, Allied Capital is down 26% following a big loss. GM is down 26% following a downgrade at Deutsche Bank with a price target of ZERO. Credit Suisse was more lenient with Ford. Their price target is one. Nortel, Tyson, Beazer Homes, and Berkshare Hathaway are all lower following earnings. Fannie and AIG are higher on huge losses. Fannie lost $29 billion while AIG lost $25 billion. Ugly, ugly numbers. Speaking of ugly, the October statements are out which may cause more selling in the coming weeks. After the first half an hour, the averages had given up some of their gains. Many of the financials moved into the red including Goldman. Goldman goes down everyday. Now for the good news. The commodity sector is strong thanks in part to the Chinese stimulus package. Deere is up 2% on a positive piece in Barrons. McDonalds is up 2.6% on strong October sales. The Dow componets in general look good. Former Dow component, AIG is up 21% on news they are getting $40 billion of the Treasury's TARP money. Best Buy is up 5% on news of Circuit City's demise.
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