Market Makes A Dead Cat Bounce For Decade Lows

What’s Happening In The Market Now..

  • Stocks were higher at the open this morning after closing near record lows yesterday. Eventually Dow closed the day up with +236 points.
  • The administration attempted to calm concerns about moving toward nationalization of the financial system but said it would provide additional support to banks that do not have an adequate buffer to survive in an even worse economy.
  • The S&P/Case Shiller composite index of 20 metropolitan areas fell 2.5 percent in December from November, compared with a 2.3 percent decline in the previous period.
  • The New York-based Conference Board said its Consumer Confidence Index, which was down slightly in January, plummeted more than 12 points in February to 25, from the revised 37.4 last month, well below the 35.5 level that economists surveyed by Thomson Reuters expected.
  • Nouriel Roubini said that nationalizing insolvent US banks is the best solution to avoid a Japan-like scenario in which ‘zombie’ financial institutions would eat up public resources while the US economy would teeter on the brink of depression.
  • The Federal Reserve Board put more pressure on banks to cut dividends as conditions deteriorate, and said it would discourage the use of federal rescue money to fund such payouts.
  • Bernanke said the economy is likely to keep shrinking in the first six months of this year after posting its worst slide in a quarter-century at the end of 2008. He hoped the recession will end this year, but that there were significant risks to that forecast.
  • Oil nearly makes it to $40 a barrel as broader financial markets rally.
  • Sectors starting the day out strong include automakers, health care facilities, diversified financial services and diversified REITs while construction & engineering, gold and multiline insurance are down.

Stocks Most Watched Today
Research In Motion Ltd. (RIMM), Yahoo! Inc. (YHOO), Foster Wheeler AG (FWLT), AngloGold Ashanti Ltd. (AU), Home Depot Inc (HD), Mosaic Company (MOS), Nordstrom Inc (JWN), Carnival Corp (CCL), Whiting Petroleum Corp (WLL), Silver Standard Resources Inc. (SSRI), Mohawk Industries Inc (MHK), Graftech International Ltd. (GTI), Daimler AG (DAI) and RadioShack Corp (RSH).

Today’s News Leaders…
Home Depot Inc (HD), Target Corp (TGT), Macys Inc (M), H J Heinz Company (HNZ) and Medco Health Solutions Inc (MHS).

Analysts Favorites…
Medcohealth Solutions Inc (MHS), Kraft Foods Inc (KFT), YUM! Brands Inc (YUM), Netflix Inc (NFLX) and Fortune Brands Inc (FO).

ETFs and HOLDRs Watched Today…
iShares Russell 1000 Growth Index Fund (IWF), Health Care Select Sector (XLV), ProShares Ultra QQQ (QLD), SPDR S&P Metals and Mining (XME) and Claymore BNY Bric (EEB).

Tip of the Day…
Teach your kids. Take the time to talk with your kids about investing. This is something they really don’t teach in school. What they learn from you could make a big difference from them later in life.