September surprise: Stocks soar

a must read article

http://cnnmoney.mobi/primary/_iyATM8-io0kNvLsyx

By Ben Rooney, staff reporter

September 01, 2010: 04:23 PM EDT

The bulls are back on Wall Street. After a bearish August, stocks roared into September with a major rally on Tuesday, as investors cheered signs of strength in the manufacturing sector.

The Dow Jones industrial average gained 256 points, or 2.2%, according to early tallies. The S&P 500 soared 31 points, or 2.9%. The Nasdaq composite rallied 63 points, or 3%.

Stocks rallied right out of the gate as investors welcomed a rebound in Chinese manufacturing activity and robust economic growth in Australia. The advance kicked into high gear following an unexpectedly strong report on U.S. manufacturing activity.

Shares of industrial names and companies in the materials sector led the charge. Caterpillar, United Technologies, Boeing all gained between 1% and 3%. Energy producers Exxon and Chevron also rose as oil prices spiked 3%.

But the rally was broad-based. Six stocks gained for every one that fell on the New York Stock Exchange. All 30 Dow components closed higher.

While the improvement in manufacturing allayed some concerns about the U.S. economy, traders said the market remains vulnerable given the uncertain outlook for growth this year.

Investors shrugged off a weaker-than-expected report from payroll processing firm ADP, which is widely seen as a leading indicator for Friday's jobs report from the Labor Department.

"This market is looking for something to grab on to," said Mark Luschini, chief investment strategist for Janney Montgomery Scott. "And for the moment it's manufacturing."

The major gauges ended the previous session essentially unchanged, closing out a lackluster August. Stocks typically start September strong, but often end on a weak note due to end-of-the-quarter movements by mutual funds.

Economy: The Institute for Supply Management's (ISM) said its index of manufacturing activity rose to 56.3 in August. Economists were expecting the index to edge lower. Any number above 50 indicates growth in the sector.

http://cnnmoney.mobi/primary/_iyATM8-io0kNvLsyx

 

(the fact proved we are right again)

we are good, right?
You can say I am nuts, also can say I am nobody, but who cares,
You made money and I did same. So let’s cheer, bulls.

we did it. :)