(Long Island, N.Y.) After small retailers announced a loss in their Fourth Quarterly Income Statements last week which led to higher fears of Recession and a slower trading in the Market last week, International Business Machines Corp., or IBM which belongs to the 30 companies trading for Dow Jones Industrials, rallied the Stock Market yesterday by filing a 24% gain in their 4th quarterly sales over their first Three parts of the year. This helped the Dow Jones recover from a devastating fall last Friday when losses were at 250 points to a rise of 170 points today to finish at 12,778.15 or 1.36% higher than on Friday. The Nasdaq also rose to 2,478.30 which is 38.36 points higher than the previous Day of trading while Standard and Poor’s 500 index was up by 15.23 points.
“The market was pretty oversold,” said Richard E. Cripps, chief market strategist for Stifel Nicolaus. “We were due to bounce back, and the IBM news didn’t hurt.” Although many major companies have yet to file their own reports, with Citigroup on Tuesday and Meryll Lynch and Company’s on Thursday, experts are still cautious whether the market will be consistent even this week. “With Major Company’s submitting there own Income Statements for the last quarter of the year last year, the market is unstable as ever. Wall Street’s downfall or upturn will be parallel to the reports filed by these companies during the course of the Week”. Expert analyst John Morris of Wachovia financials said.
Another factor that could play a huge role on Wall Street is the outcome of the January 29th – 30th meeting of the Federal Reserve where key issues will be tackled like the cutting of Interest rates, Injection of capitals for investments in the U.S. and other financial strategies that could be the difference between recession or a mild economic outlook for the year. “We’re expecting inflation to be a problem, and believe the commodity demand is going to continue,” Dunay said. “We think the Fed is going to throw as much money as they can to keep us out of recession, or keep the recession mild, so commodities will be higher.”
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