Wall Street Rebounds from Tuesday Losses

February 21, 2008

(Long Island, N.Y.) Investors undermined their concerns of economic declines in the country to fuel Wall Street in avenging a disappointing loss last Tuesday which saw the market gaining momentum in early trading only to falter at the latter stages of the day conceding the short-term gain.

The Dow Jones Industrial Indexes recovered with 90.04 points gained yesterday which is 0.73% higher than the closing on Tuesday and finished with 12427.26 points. The Nasdaq composites also increased 20.90 points which is a 0.91% gain and ended the day with 2327.10 points while broader trading Standard and Poor 500 added 11.25 points to close at 1360.03 points for a 0.83% gain.

Wall Street’s rally was mainly attributed to a positive income report announced by Hewlett Packard for their first quarterly statement which propelled optimism for some investors to stay actively involved throughout the day as more companies filed their own statements. Also, other factors that triggered Wall Street’s rise was the monumental increase in oil prices which gave energy stocks a much needed boost though not an earful of good news for consumers.

Oil prices extended a new record on Wednesday in the New York Mercantile Exchange as it flirted above the $101 mark before it settled at $100.74 a barrel up from previous day trading with $100.01 which was the first time in history that oil prices reached the triple digit mark. “The Fed was the catalyst to get us going here, this is unbelievable,” said Phil Flynn an analyst for Alaron Trading Corp. which represents the interest of the energy sector.

Meanwhile, a new economic forecast was released by the Federal Reserve which underlines the growing concern of recession as “avoidable” but nonetheless predicted slower economic growth than earlier expected due to concerns with the Housing sector and bad creditors. “With no signs of stabilization in the housing sector and with financial conditions not yet stabilized, the committee agreed that downside risks to growth would remain even after this action,” according to minutes of the Fed’s January 29th -30th closed door meeting.

Posted by News LI Editor · Edited by Brianna - Filed Under Money