"Stocks have fallen into a pattern: Rise, rise, rise for several sessions, then sell off after a spot of bad news. Recover the next day, and repeat. This week has been no exception. Stocks rebounded to end sharply higher Wednesday, following the worst session in more than two months. Investors digested a mixed batch of financial results and shrugged off a tepid report on regional economic conditions.
Gains were broad-based in the recovery from Tuesday's rout, with 27 of the 30 blue-chip Dow components ending higher. Airline stocks received a boost following Boeing's upbeat earnings, but financial shares lagged on mixed reports from big banks.
Stocks have been rising on speculation that the Federal Reserve will announce plans to resume large-scale purchases of U.S. Treasuries, a policy called quantitative easing, when it meets next month. "Everyone's thinking, the Fed's got my back, and when they run out of money they'll just find some more," said Joseph Saluzzi, co-head of equity trading at Themis Trading.
But investors fled stocks Tuesday after China unexpectedly raised interest rates, heightening concerns that cooling growth in China would drag on global growth. Major U.S. stock indexes posted the biggest one-day declines since early August. Saluzzi said the market is in a cycle of rising for weeks on an expectation of Fed moves -- then selling off for a day on disappointing news, followed by a rebound session.
"It's more of the same, with no end in sight," Saluzzi said of Wednesday's session." [Source:cnnmoney.com]
The DJIA Index finished the trading session Up 129.35; and The SPI Futures are currently: Up 24 pts atm.
Of note in the US this evening:
Philadelphia Fed Survey [Market moving indicator]
Jobless Claims [Merits extra attention]
EIA Natural Gas Report [Merits extra attention]
...AND...
Of note in Australia today:
RBA Foreign Exchange Transaction (Sep) [The Foreign Exchange Transactionreleased by the Reserve Bank of Australia shows the movements of the exchange of the AUD for others, likewise others for the AUD. It indicates the climate of foreign investors into the AUD itself. This event causes volatility in the AUD. Generally, an increasing number of investments is seen as positive prospect of the Australian economy (or bullish sentiment for the AUD).]
Gold is currently trading Up $1.00 & is sitting at US$1,347.10/oz atm [Source: Kitco] Oil is currently trading Up $0.06 & is sitting at US$82.60/oz atm [Source: Bloomberg] The Dollar: The AUD/US is currently trading @ 0.9859 cents [Source: Forex. Live]
