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Wednesday, 11 March 2009 13:02:59 GMT
Written by John Rivera, Analyst
Full Article
The confidence in the banking sector has started to return after Citigroup forecasted that it would have its best quarter since 3Q of 2007 and U.S. Treasury Secretary Tim Geithner predicts the bank rescue plan will succeed. The positive Citigroup news helped send stocks to the biggest one day rally since late November as Citi CEO Vilram Pandit said the bank was profitable in the first two months. On Charlie Rose yesterday the Treasury Secretary said that the details for dealing with the toxic assets on banks balance sheets will be unveiled in the next couple of weeks. He expressed confidence that the plan would work but would take time to work. Banking stocks have been beaten down and many trading at multi –decade lows leaves huge upside potential for them and if they continue to receive support, it may drag the entire market higher. Meanwhile, MBA mortgage applications showed a 11.3% increase which was a reversal from last weeks 12.3% decline which will also helped fuel bullish sentiment.
Dow Jones 6926.49
The DJIA futures were pointing toward a positive open as the increasing confidence in the banking sector should help lift financials higher. However, a 25.7% drop in Chinese exports in February dampened optimism overnight as the fears of a deepening global recession increased.
NASDAQ 1358.28
The Nasdaq across the board gains yesterday led by a 8.06% jump in tech stocks. The sector continues to be the favorite of traders and should continue to benefit from broader bullish sentiment.
S&P 500 719.60
The S&P 500 could benefit from continue support for financials as the sector was up 15% yesterday.
CFDTrading provides news on the economic reports and political events that influence the CFD traders.
Written by John Rivera, Analyst
Full Article
The confidence in the banking sector has started to return after Citigroup forecasted that it would have its best quarter since 3Q of 2007 and U.S. Treasury Secretary Tim Geithner predicts the bank rescue plan will succeed. The positive Citigroup news helped send stocks to the biggest one day rally since late November as Citi CEO Vilram Pandit said the bank was profitable in the first two months. On Charlie Rose yesterday the Treasury Secretary said that the details for dealing with the toxic assets on banks balance sheets will be unveiled in the next couple of weeks. He expressed confidence that the plan would work but would take time to work. Banking stocks have been beaten down and many trading at multi –decade lows leaves huge upside potential for them and if they continue to receive support, it may drag the entire market higher. Meanwhile, MBA mortgage applications showed a 11.3% increase which was a reversal from last weeks 12.3% decline which will also helped fuel bullish sentiment.
Dow Jones 6926.49
The DJIA futures were pointing toward a positive open as the increasing confidence in the banking sector should help lift financials higher. However, a 25.7% drop in Chinese exports in February dampened optimism overnight as the fears of a deepening global recession increased.
NASDAQ 1358.28
The Nasdaq across the board gains yesterday led by a 8.06% jump in tech stocks. The sector continues to be the favorite of traders and should continue to benefit from broader bullish sentiment.
S&P 500 719.60
The S&P 500 could benefit from continue support for financials as the sector was up 15% yesterday.
CFDTrading provides news on the economic reports and political events that influence the CFD traders.