The rally was broad-based. Financials were among the best performers on more signs the credit freeze is thawing. Sales of longer-term commercial paper soared tenfold. Fifth Third Bancorp said it will get $3.45 billion from the Treasury and the shares rose 1.95 to 10.76. Boeing gained 6.55 to 48.91 after the company reached a tentative pact with machinists.
The blowout on Wall Street was not isolated. Foreign markets soared as well. Hong Kong's benchmark surged 14%. Germany's benchmark index climbed 11%. Weak economic reports were more evidence that the Fed may cut interest rates tomorrow, when its two-day meeting concludes. Consumer confidence in October fell to a record low.
The Dow closed up 889.35 points at 9065.12. NYSE volume totaled 1.73 billion shares. The S&P 500 gained 91.59 points. The Nasdaq rose 143.6. Advancing issues beat decliners by 4-1 on the NYSE and by 5-2 on the Nasdaq. The 10-year Treasury was down more than a point to yield 3.85%.
Reported by Stock Market News Commentary by Alfred Goldman of Wachovia Securities.
Many stock markets recovered on Tuesday following Monday's sharp downward trend. The Japanese stock exchange, the Nikkei, opened lower than at the end of trading on Monday, and, during the morning, dropped to below 7,000 points for the first time since 1982. However, later in the day, investors began looking for bargains and the markets turned bullish. The Nikkei finally closed on 7,622 points, having gained nearly 6.5 percent.
The Frankfurt stock exchange in Germany rose, with Volkswagen shares climbing at a spectacular rate due to a buying spree by car manufacturer Porsche which, briefly, made Volkswagen the world's largest company by market value. Porsche has promised to expand its interests in Volkswagen.
The Dutch government gave insurer Aegon a three billion euro capital injection in an attempt to protect the company from the shocks of the global financial crisis.
Reported by Radio Netherlands.
