AGL 38.99 Decreased By ▼ -0.59 (-1.49%)
AIRLINK 131.56 Increased By ▲ 0.34 (0.26%)
BOP 6.78 Decreased By ▼ -0.03 (-0.44%)
CNERGY 4.66 Decreased By ▼ -0.05 (-1.06%)
DCL 8.55 Increased By ▲ 0.11 (1.3%)
DFML 41.18 Decreased By ▼ -0.29 (-0.7%)
DGKC 81.79 Decreased By ▼ -0.30 (-0.37%)
FCCL 32.78 Decreased By ▼ -0.32 (-0.97%)
FFBL 72.50 Decreased By ▼ -0.37 (-0.51%)
FFL 12.53 Increased By ▲ 0.27 (2.2%)
HUBC 110.80 Increased By ▲ 0.06 (0.05%)
HUMNL 14.12 Decreased By ▼ -0.39 (-2.69%)
KEL 5.15 Decreased By ▼ -0.04 (-0.77%)
KOSM 7.63 Increased By ▲ 0.02 (0.26%)
MLCF 38.80 Decreased By ▼ -0.10 (-0.26%)
NBP 63.15 Decreased By ▼ -0.86 (-1.34%)
OGDC 190.70 Decreased By ▼ -2.12 (-1.1%)
PAEL 25.46 Decreased By ▼ -0.22 (-0.86%)
PIBTL 7.39 Increased By ▲ 0.05 (0.68%)
PPL 151.70 Decreased By ▼ -2.37 (-1.54%)
PRL 25.61 Decreased By ▼ -0.22 (-0.85%)
PTC 17.35 Decreased By ▼ -0.46 (-2.58%)
SEARL 81.23 Decreased By ▼ -1.07 (-1.3%)
TELE 7.75 Decreased By ▼ -0.01 (-0.13%)
TOMCL 33.25 Decreased By ▼ -0.21 (-0.63%)
TPLP 8.39 Decreased By ▼ -0.10 (-1.18%)
TREET 16.90 Increased By ▲ 0.28 (1.68%)
TRG 58.23 Increased By ▲ 0.83 (1.45%)
UNITY 28.10 Increased By ▲ 0.59 (2.14%)
WTL 1.35 Decreased By ▼ -0.02 (-1.46%)
BR100 10,476 Decreased By -28.2 (-0.27%)
BR30 31,004 Decreased By -221.9 (-0.71%)
KSE100 97,762 Decreased By -317.8 (-0.32%)
KSE30 30,453 Decreased By -105.5 (-0.35%)

US stocks on Tuesday clawed back from Wall Street's worst slide in more than 20 years, as investors bet that Washington would still pass a plan to stabilise the US financial sector despite Monday's defeat. The day after House members rejected the proposed $700 billion rescue plan, US President George W. Bush, Treasury Secretary Henry Paulson and congressional leaders pledged to continue negotiations.
Investors snapped up beaten-down shares across the board, with financial and technology companies among the standouts. Apple Inc contributed the most to the Nasdaq's advance, a day after the iPod-maker led the index to its worst day since the bursting of the Internet bubble.
It is not unusual for big sell-offs like Monday's to be followed by a short-term relief rally, Mary Ann Bartels, chief US market analyst at Merrill Lynch wrote in a note to clients. Of the eight times the S&P fell by at least 8.79 percent, a next-day rally occurred six times, she said.
"There are at least some hints of optimism that something will still happen soon with regards to the bill," said Jim Dunigan, managing executive of investments at PNC Wealth Management. "It's not surprising with the washout yesterday that you'd get some bounce-back today, both due to bargain hunters and some prospects of a resolution. All eyes are still on Washington."
Stronger-than-expected economic reports, including a reading on consumer confidence, added to the positive sentiment. The Dow Jones industrial average shot up 272.63 points, or 2.63 percent, to 10,638.08, while the Standard & Poor's 500 Index climbed 36.34 points, or 3.28 percent, to 1,142.73. The Nasdaq Composite Index was up 64.92 points, or 3.23 percent, at 2,047.07.
Without a sudden surge, the S&P 500 index was headed on Tuesday for its worst quarter since the third-quarter of 2002 and its worst monthly slide since September of the same year.
Even with the bounce, signs of mounting strains in the credit markets fuelled caution after overnight dollar interbank lending rates hit their highest in at least 7-1/2 years, suggesting banks continued to horde cash amid a lack of confidence. The surprising defeat of the plan rattled markets around the globe, with Asian stocks following Wall Street's Monday slide overnight. European shares recovered after Bush's remarks and an indicator showing improved consumer confidence.
Among financials, J.P. Morgan shares rose 12.3 percent to $46.06, making the stock a top boost to the Dow. Shares of Citigroup climbed 15.3 percent to $20.46, as the S&P financial index rose 8.6 percent following Monday's slide of 16 percent. Shares of Apple Inc, a tech bellwether, rose 5.2 percent to $110.68 on Nasdaq. Shares of Intel Corp climbed 5.8 percent to $18.26 after Piper Jaffray, a brokerage, raised its recommendation on the chip maker.
In economic news, the S&P/Case-Shiller Home Price Index showed further deterioration in housing, with prices of single-family homes plunging a record 16.3 percent in July. But both the September Chicago PMI, a measure of manufacturing activity in the US Midwest, and the Conference Board's reading on consumer confidence in September, were stronger-than-expected, tempering fears about the health of the economy.

Copyright Reuters, 2008

Comments

Comments are closed.