Events Calendar
In This Section
Fees eat up gift-card balances
Can't find the hot new toy? Blame the economy
Stocks jump after G-20 pledge to aid economies
Framed for child porn -- by a PC virus
Strollers recalled for fingertip amputation hazard
Ohio gas prices down 8 cents from last week
Most Read Stories
Unusual sports bar to be sold at auction
Motorcyclist killed, wife injured in Stark County crash
Family found dead in Ohio home
Man says he was punched, robbed by 3 people in parking lot
Man gets 3 years in prison for having sex with horse
Bank helps more save their homes
Circle K on Brown Street robbed
Woman says clinic refused to help her get pregnant because she's not married
Blogs:
Pets:
Cats are trainable — and that's not a punchline
The Heldenfiles:
Monday Notebook
Patrick McManamon:
Time for Kokinis, Browns to agree and part ways
Akron Zips:
Zips tip off tomorrow
Tribe Matters:
Indians announce spring dates
Cleveland Browns:
Mangini doesn't name a quarterback
Kent State Sports:
KSU Notes – November 9
Cleveland Cavaliers:
Shaq: It’s All About Winning Championships
Buckeye Blogging:
Weekly ‘B’ Deck Report – New Mexico St.
Varsity Letters:
Walsh Jesuit’s Caponi commits to Duquesne
All Da King's Men:
If It Looks Like Islamic Terrorism…
Blog of Mass Destruction:
Dems Message To Women: Don't Enjoy The Sex
Akron Law Café:
Abortion Analogies
See Jane Style:
Muffle Your Muffler
Car Chase:
Clock Tender- Extending the Life of Collector Car Clocks
Let's Talk Real Estate:
Rumors: Akron Starbucks Closing
Ohio Travels with Betty:
Jack is looking for a trip to Southern Ohio the week of November 16.
Sound Check:
The Black Keys to perform benefit concert at Musica on November 27
HRLite House:
Personal Rant – Why People Do Not Live in Northeast Ohio
Akron Gamer:
New 'Call of Duty' could set entertainment record
By Tim Paradis
Associated Press
POSTED: 12:54 p.m. EDT, Sep 30, 2008
NEW YORK: Wall Street snapped back today after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.
The rise in stocks wasn't unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from banks' balance sheets, investors are wondering what might restore confidence in lending.
Major stock indexes were almost a sideshow during the session, with the credit markets as the main event. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy.
Traders on the floor of the New York Stock Exchange, still stunned from Monday's 778-point plunge in the Dow Jones industrial average, warned that the government needs to approve a plan that will sweep away the fears that hobbled the credit markets. While U.S. political leaders have vowed to revisit the issue, the House isn't slated to meet again until Thursday.
''If it doesn't pass, then look out below,'' said Jason Weisberg, an NYSE trader for Seaport Securities. ''It could get ugly.''
Though the blue-chip index rose more than 250 points at midday, the main worry for traders is that a lack of a plan will make it nearly impossible for some companies to fund basic operations like making payroll. Participants in the credit market buy and sell debt that companies use to finance operations.
The benchmark London Interbank Offered Rate, or LIBOR, that banks charge to lend to one another rose sharply today, making it more expensive and difficult for consumers and businesses to borrow money. In addition, credit card debt and more than half of adjustable-rate mortgages are tied to LIBOR, so an increase isn't welcome for many consumers.
LIBOR for 3-month dollar loans rose to 4.05 percent from 3.88 percent on Monday. LIBOR for 3-month euro loans, meanwhile, rose to 5.27 percent, from 5.22 percent Monday.
Critics of the bailout package believe that it was too costly and wouldn't have done enough to jump-start lending. To maintain pressure ahead of Thursday's likely vote, President Bush said in a statement from the White House early today that the damage to the economy will be ''painful and lasting'' unless Congress passes the bailout measure.
On Wall Street, many traders likely will proceed cautiously while they gauge prospects for resurrecting the bailout effort, which was backed by leaders of both parties.
''I'm not getting the sense that investors are going to be jumping in with both feet until there is some kind of resolution on the plan,'' said James Maguire, an NYSE floor trader with Christopher J. Forbes. ''If there's a no vote, we're going to seen a lower overall drift in stocks. It will be a slow bleed.''
Traders also will likely focus on how the bloodshed will look on paper. Today
marks the final session of the third quarter — and what is typically the worst month for the stock market — so some portfolio managers might try to do what they can to dress up their performance. Others might simply wish to dump holdings in an unpopular corners of the market like the financial sector.
In midday trading, the Dow Jones industrial average rose 253.04, or 2.44 percent, to 10,618.49 after falling nearly 7 percent on Monday to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in the blue chip index. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987 and before the Great Depression.
Broader stock indicators also bounced higher today. The Standard & Poor's 500 index rose 34.25, or 3.10 percent, to 1,140.67, and the Nasdaq composite index rose 60.27, or 3.04 percent, to 2,044.00.
The S&P fell 8.79 percent Monday, while the Nasdaq lost 9.14 percent.
The yield on the 3-month Treasury bill rose today to 0.67 percent from 0.14 percent late Monday. The yield fell Monday as investors clamored for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.58 percent late Monday. The dollar rose against other major currencies and gold prices advanced.
While investors focused on what might come from Washington this week, Wall Street was cheered by several economic readings.
A private research group reported that consumer confidence rose unexpectedly in September. The Conference Board said today its Consumer Confidence Index rose to 59.8 from a revised 58.5 in August; Wall Street had expected a reading of 55.5, according to Thomson/IFR. The reading, which doesn't reflect attitudes following Monday's steep stock market sell-off, remains near a 16-year low.
The Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana, came in at 56.7 compared with 57.9 in August — a second straight month of a strong reading.
Light, sweet crude rose $2.40 to $98.77 on the New York Mercantile Exchange. Oil fell more than $10 a barrel Monday as investors worried that a weaker economy would curtail demand.
Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to a light 485.3 million shares.
The Russell 2000 index of smaller companies rose 8.50, or 1.29 percent, to 666.22.
Overseas, Japan's Nikkei stock average fell 4.12 percent. But Hong Kong's Hang Seng index rose 0.76. In afternoon trading, Britain's FTSE 100 rose 1.73 percent, Germany's DAX index added 0.41 percent, and France's CAC-40 rose 1.99 percent.
NEW YORK: Wall Street snapped back today after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.
The rise in stocks wasn't unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from banks' balance sheets, investors are wondering what might restore confidence in lending.
Major stock indexes were almost a sideshow during the session, with the credit markets as the main event. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy.
Traders on the floor of the New York Stock Exchange, still stunned from Monday's 778-point plunge in the Dow Jones industrial average, warned that the government needs to approve a plan that will sweep away the fears that hobbled the credit markets. While U.S. political leaders have vowed to revisit the issue, the House isn't slated to meet again until Thursday.
''If it doesn't pass, then look out below,'' said Jason Weisberg, an NYSE trader for Seaport Securities. ''It could get ugly.''
Though the blue-chip index rose more than 250 points at midday, the main worry for traders is that a lack of a plan will make it nearly impossible for some companies to fund basic operations like making payroll. Participants in the credit market buy and sell debt that companies use to finance operations.
The benchmark London Interbank Offered Rate, or LIBOR, that banks charge to lend to one another rose sharply today, making it more expensive and difficult for consumers and businesses to borrow money. In addition, credit card debt and more than half of adjustable-rate mortgages are tied to LIBOR, so an increase isn't welcome for many consumers.
LIBOR for 3-month dollar loans rose to 4.05 percent from 3.88 percent on Monday. LIBOR for 3-month euro loans, meanwhile, rose to 5.27 percent, from 5.22 percent Monday.
Critics of the bailout package believe that it was too costly and wouldn't have done enough to jump-start lending. To maintain pressure ahead of Thursday's likely vote, President Bush said in a statement from the White House early today that the damage to the economy will be ''painful and lasting'' unless Congress passes the bailout measure.
On Wall Street, many traders likely will proceed cautiously while they gauge prospects for resurrecting the bailout effort, which was backed by leaders of both parties.
''I'm not getting the sense that investors are going to be jumping in with both feet until there is some kind of resolution on the plan,'' said James Maguire, an NYSE floor trader with Christopher J. Forbes. ''If there's a no vote, we're going to seen a lower overall drift in stocks. It will be a slow bleed.''
Traders also will likely focus on how the bloodshed will look on paper. Today
marks the final session of the third quarter — and what is typically the worst month for the stock market — so some portfolio managers might try to do what they can to dress up their performance. Others might simply wish to dump holdings in an unpopular corners of the market like the financial sector.
In midday trading, the Dow Jones industrial average rose 253.04, or 2.44 percent, to 10,618.49 after falling nearly 7 percent on Monday to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in the blue chip index. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987 and before the Great Depression.
Broader stock indicators also bounced higher today. The Standard & Poor's 500 index rose 34.25, or 3.10 percent, to 1,140.67, and the Nasdaq composite index rose 60.27, or 3.04 percent, to 2,044.00.
The S&P fell 8.79 percent Monday, while the Nasdaq lost 9.14 percent.
The yield on the 3-month Treasury bill rose today to 0.67 percent from 0.14 percent late Monday. The yield fell Monday as investors clamored for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.74 percent from 3.58 percent late Monday. The dollar rose against other major currencies and gold prices advanced.
While investors focused on what might come from Washington this week, Wall Street was cheered by several economic readings.
A private research group reported that consumer confidence rose unexpectedly in September. The Conference Board said today its Consumer Confidence Index rose to 59.8 from a revised 58.5 in August; Wall Street had expected a reading of 55.5, according to Thomson/IFR. The reading, which doesn't reflect attitudes following Monday's steep stock market sell-off, remains near a 16-year low.
The Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana, came in at 56.7 compared with 57.9 in August — a second straight month of a strong reading.
Light, sweet crude rose $2.40 to $98.77 on the New York Mercantile Exchange. Oil fell more than $10 a barrel Monday as investors worried that a weaker economy would curtail demand.
Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to a light 485.3 million shares.
The Russell 2000 index of smaller companies rose 8.50, or 1.29 percent, to 666.22.
Overseas, Japan's Nikkei stock average fell 4.12 percent. But Hong Kong's Hang Seng index rose 0.76. In afternoon trading, Britain's FTSE 100 rose 1.73 percent, Germany's DAX index added 0.41 percent, and France's CAC-40 rose 1.99 percent.
Comments
Click here to post your comments
Akron, Oh
Posted 08:02 PM, 09/30/2008
no comments? How am i going to learn this stuff?
