The primary stock indices struggled for the majority of the last trading
session in the U.S Then, during the last hour of the session, indices climbed
into the green to close. A turn around initiated on the backs of stronger stock
gains for some of the big banks. The Dow Jones, Nasdaq and S&P 500 all finished
green for the day. It was a better than expected close for the primary U.S.
indices which have struggled for weeks. Investors spent the majority of the
session worried about the negatively skewed economic data posting. BofA CEO
announced that the company would have to job-cut approximately 30,000 positions.
This would be a component of the restructuring plan Bank of America continues to
implement. In addition to this negatively skewed news, investors remained
worried over the ongoing debt crisis in Europe. These two factors weighed
heavily on the primary stock indices throughout the majority of the session, but
a late day rally turned trends around. Stocks were rejuvenated over news that
China could buy Italys bonds. At this point though, rumors were all that were
available regarding this issue. Investors felt a boost of optimism that this
could help abate the eurozone crisis. After rumors of this news spread, the Dow
Jones Industrial Average, Nasdaq and S&P 500 all added points. This occurred
during the last hour of trading and helped to push the indices into positive
territory. The Dow Jones Industrial Average finished the last session higher by
.63 percent or 68.99 points at 11,061.12. The S&P 500 finished higher by .70
percent or 8.04 pints at 1,162.27. The Nasdaq finished the session higher by
1.10 percent or 27.10 points at 2,495.09. If China does follow through with
these rumors, the debt problems will diminish temporarily but problems will not
totally be extinguished. On a more positive note, President Obama is pushing for
jobs. President Obamas jobs bill moved on to Congress. President Obamas plan
calls for almost 450 billion dollars aimed at job creation. In addition last
session, the National Association of Business Economists pulled back on original
growth expectations for 2011 and 2012. Global markets still ended lower. Asian
markets closed out in the red. The Hang Seng dropped by over 4 percent and the
Nikkei dropped over 2 percent. European stocks ended red as well yesterday. The
DAX, CAC and the Britains FTSE sunk lower to end their sessions. The dollar
ended the session higher versus the British pound and the euro. Oil price per
barrel for October delivery moved higher by 95 cents to 88.19 per barrel. Gold
contract for December delivery finished lower by 2.48 percent at 1813.30 per
troy ounce. Stock futures appear positioned for a stronger open on Tuesday for
U.S. indices. Frank Matto
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