Markets in North America climbed back amongst heavy losses early in the week as the US Fed cut the Discount Interest rat by half a percentage point. This is the rate that banks borrow from the Federal Reserve. The news sent stocks flying early Friday and the rally held steady in the late afternoon led overall by the Financials.
Positive earnings and a positive outlook from Hewlett-Packard (HPQ), Dell's (DELL) internal earnings audit completion and general bargain hunting helped Technology put the Nasdaq ahead by almost 2.5%. Options Expiration also helped fuel some of the buying as several big tech names hit even strike levels. Whole Foods (WFMI) completed another hurdle in its attempt to acquire Wild Oats (OATS) which in turn made company shares jump 7% and 17% respectively.
Thursday's quick climb from the aftermath of a morning 300+ point Dow drop continued Friday and the major indices almost climbed back to even for the week. The TSX in Canada was also led by Financials but the market saw a 400 point gain close to only 200 by the end of the day. Canadian currency gained strong on the US rate cut news and the Bank of Canada went back on its plan for a rate hike later this fall. The markets in North America are still in uncertain and turbulent times, however Friday showed that on positive news buyers are there just waiting to jump in.
18 August, 2007
Market Week ends on a High as Fed and Options Expiration Lead Rally
Subscribe to:
Post Comments (Atom)
1 comment:
Have you ever experienced a cell phone running out of power just at the critical time when you need it? Would you not love a cell phone that runs 6 months straight without needing recharge? Or a laptop computer that works a month at a time?
You will LOVE it! The technology is finally here! They spent billions of dollars on this thing for years and it's finally ready for mass marketing later this year. It's called DMFC, Direct Methane Fuel Cell.
Fuel cells, like DMFC, MUST utilize precious metals palladium and platinum. Supply of PGM is very limited. The whole world produces only 7 million ounces of palladium per year, and consumes more even without fuel cell. There will be a huge shortage, driving the price of PGM metals, especially palladium, to the stratosphere!!!!
That brings a huge opportunity buying the SWC stock, near 52 week low now. SWC is the one of the only few PGM metal producers in the world, the ONLY one in the USA. The stock is cheap because it has NOT been making money yet. But with huge demand of PGM kicking in as DMFC goes to mass market soon, you bet you can make money in SWC beyond your wildest dream!!!
SWC has a price/sales ratio as low as 1.2. What kind of P/E will it have if PGM metal price just increase 4 or 5 times? Click on my name to read more on my blog.
Post a Comment