Wall Street Rallies to Cut Large Deficit

March 5, 2008

(Long Island, N.Y.) The Stock Market opened up weak on Tuesday as reports of Merrill Lynch and Intel Corp. lowering its expectations for their first quarterly income reports brought down investor’s trading activity but staged a slight rally after CNBC news announced positive developments on the negotiations to save troubled bond insurer AMBAC financials.

Volatility seems to be the perfect description of Wall Street these days as investor’s are on constant alert for any positive or negative economic developments that could help our economy break off recession and inflation threats or completely succumb to it. The Dow Jones Industrial lost 45.10 points for a negative 0.37 percent change to finish with 12213.80 points. The NASDAQ composites shared volatility concerns as it gained a slight increase of 1.68 points to end with 2260.28 while the Standard and Poor 500 decreased 4.59 points and end the day’s trading with 1326.75 total points.

“What we’re seeing is a very nervous market, and nervousness breeds volatility, it took years to put this stuff on their books — it’s not going to come off quickly.” Said Anthony Conroy who is the managing director and head trader for BNY ConvergEx Group.

Financial experts and Wall Street analysts hope for another interest rate cut to be implemented by the Federal Reserves later this month that would give both the housing and construction industry markets a much needed boost as indicated by Fed’s chairman Ben Bernanke in an earlier statement made at Capitol Hill regarding the current state of economy. Another contributing factor for any optimism will be the pending release of tax-rebates issued by the government in an effort to help the struggling US economy.

“The soft economy creates a difficult profit environment for most firms. And with investors’ skepticism at high levels, they are quick to sell,” said Alan Gayle, senior investment strategist at Trusco Capital Management referring to Wall Street investors fear which trigger the up and down market.

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