Stocks rally, Dow up 200 points

Posted Jul 29th 2008 2:25PM by Michael Rainey
Filed under: Starbucks (SBUX), Indices, Economic Data

Major U.S. stock indices moved higher on Tuesday. As of 2 pm, the Dow was up 200 points or 1.7%, the Nasdaq was up 45 (2%) and the S&P 500 was up 20 (1.6%).

The declining price of oil was a significant factor, as crude futures fell $3 to the $122 per barrel level. The dollar rose against the major currencies, gaining 1% on the euro.

The big question, of course, is whether today's rally reflects a turn in the market. More likely, we are seeing a burst of enthusiasm driven by lower oil prices. But plenty of bad news hangs over the market, with more likely to come.

The macro-economic picture is still bleak, and getting bleaker. Layoffs are increasing -- Starbucks (NASDAQ: SBUX) announced that it will cut 1,000 jobs, while Bennigan's and Steak & Ale filed for bankruptcy -- and the credit crisis shows no signs of abating. Housing prices continue to drop at an alarming rate.

So beware this and all the other rallies we've seen lately. This bear market is not over yet.

Tags: Dow, indices, inthenews, oil, SBUX

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Reader Comments (Page 1 of 1)

7-29-2008 @ 7:33PM

wily said...

Last summer, right before SBUX announced their quarterly results they raised their prices. How'd that work out? This year they cut the work force. Howard seems to pull out rabbits at convenient times.