Today in the market, Tuesday, November 04, 2008: Stocks rose in the biggest Election Day rally ever on Tuesday, as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, and as energy companies’ shares followed oil prices higher.
The rally pushed stocks to their highest close since Oct. 6, with the S&P 500 crossing the 1,000 mark for the first time since Oct. 13. The three major U.S. stock indexes are all up around 18 percent from their closing low points on Oct. 27.
Adding to the positive tone, the Treasury Department is exploring how to best expand its capital injection program and is considering specialty finance firms, such as General Electric’s GE Capital unit, a source familiar with the government’s thinking said. Shares of GE, an economic bellwether and a Dow component, rose more than 7 percent.
Chevron led the Dow higher after U.S. crude futures CLc1 jumped $6.62, or 10.4 percent, to settle at $70.53 a barrel on signals that OPEC members were cutting output to comply with the group’s recent decision.
More signs of thawing credit markets prompted investors to snap up shares at multi-year lows. The interest rates banks charge each other for short-term loans fell again, providing further hope that measures to shore up the credit markets are taking hold. (headline & commentary courtesy of Reuters)
ETF/CEF Low Volatility:
- IEF – 7-10 Year Treasury Bond Fund (Leh) iShares
ETF/CEF Discussion: On Election Day, RSI has returned with its broken record pick again. With such a huge rally, I’m disappointed that RSI has such a lukewarm selection. This is very defensive. Does RSI infer that this Election Day rally has feet of clay? Heavens forbid! Maybe we should heed RSI’s advice and remain defensive.
Don’t stay up too late following the election returns. Catch you tomorrow.
