Strong comeback for US market

October 24, 2007


The US market showed strong bounce back on Tuesday mostly was helped by strong earnings by blue chip company comprises of American Express Co and Apple Inc. The technology sector were in limelight and were the biggest gainer following the excellent quarterly result by Apple which were ahead of street expectations with a 67% jump in fiscal 4th-quarter profit on strong sales of Macintosh computers, iPods and iPhones. However concerns still were roving around housing and credit which might drip over into the rest of the economy.

The stock market increased its recovery from Monday after seeing a very bad session on Friday as well as conservative sold off for five continuous market sessions as uncertainties about the credit market's outcome on the economy after a time when several blue chip companies presented sluggish outlooks and S&P downgraded more mortgage-backed securities.

The Dow Jones rose 100+ or 0.81%. The Standard & Poor's 500 index rose 0.88% to 1,519.59; the Nasdaq composite index rose 45.33 to 2,799.26.

Wall Street stock investors are also expecting some more good positive news from Fed at their meets next week to decide the future of rates.

At this point, from only stock trading perspective I would like to book my profit at higher level whereas from stock investing perspective I would still like to wait and watch and see how the situation pan out in coming days, but at every significant dip of more than 500 points, I would like to do bargain hunting in selected stock pick from long term stock investing perspective.