US Markets make a comeback

Nasdaq ends higher for the first time in 2008 ending eight day losing streak

With the help of Financial and Technology stocks, US stock market made a sudden but modest comeback today, Wednesday, 09 January, 2008 and all the three indices closed higher simultaneously for the first time in FY 2008. The stock market oscillated between positive and negative territory for the entire day. At the end, each of the ten economic sectors finished in positive territory. Gold prices struck another new record today but crude witnessed marginal drop.

Dow component Du Pont raising its profit estimate for FY 2007 and FY 2008 also fuelled today’s rally. After being down by almost 84 points earlier in the day, the Dow Jones industrial Average finally ended the day with a good gain of 146.2 points at 12,735.3. The Nasdaq Composite Index, finished higher by 34 points at 2,474. S&P 500 finished higher by 19 points at 1,409.

Twenty-four out of thirty Dow stocks ended in the green today. Du-Pont headed the group of winners while GM headed the team of losers. Among the financials, Citigroup and JP Morgan made a late comeback and closed 1.3% higher. Du-Pont stock ended higher by 4.8%.

Stocks today opened modestly higher today on news that Dow Component DuPont raised its earnings guidance for 2007 and 2008. But economic concerns again weighed on traders, after Goldman Sachs said the U.S. is likely in a recession or will be there shortly. Stocks started trading in negative territory. But in between, they crept back in the green.

Indian ADRs ended mixed today but majority of them ended in green. Tata Motors and HDFC Bank were the topmost winners gaining 5.2% and 3.5% respectively.

Crude prices went through a volatile session today and ultimately ended lower for the day. Prices rose today initially after chances of recession hitting US increased. But at the end prices closed lower as Energy Department reported buildup in fuel stockpiles. Crude-oil futures for light sweet crude for February delivery closed at $95.67/barrel (lower by $0.66/barrel or 0.7%) on the New York Mercantile Exchange. Earlier, the contract hit an intraday high of $97.97 and a low of $95.42. Prices are 72% higher on a yearly basis.

Volume on the New York Stock Exchange neared 2.1 billion shares, and advancing stocks racing ahead of those declining 3 to 1. On the Nasdaq, more than 2.8 billion shares exchanged hands, and advancers topped decliners by about 7 to 6.

Tomorrow, the weekly initial jobless claims and wholesale inventories readings are slated for release.