A tug of war is in full swing on Wall Street and those pulling for stocks came out way ahead on Tuesday for the first time in a while.
After four mostly miserable weeks, a powerful afternoon rally left traders wondering if it was time to buy again. Shares, the bulls argued, have become too cheap to resist, despite signs of trouble in the economy. Many other investors, however, remained unpersuaded.
At about 2 p.m., the market exploded into one of its biggest rallies since World War II, with the Dow Jones industrial average closing up 889.35 points, or 10.9 percent, to 9,065.12. In the last 69 years, the Dow has gained that much on only one other day, and that was two weeks ago, on Oct. 13.There was no single catalyst for the surge, and market specialists said investors seemed to be coming around to the idea that stocks were worth buying, given that the Dow had plunged 32 percent since the end of August....MORE
Tuesday, October 28, 2008
Even as Dow Soars 11%, Skeptics Lurk
From the New York Times: