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Mid-Day Reversal Lifts Stocks To A Positive Finish

Published 12/31/2000, 07:00 PM
Updated 01/15/2009, 04:40 PM
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**IT APPEARS AS IF ALL PASSENGERS AND CREW HAVE SURVIVED THE U.S. AIRWAYS PLANE CRASH INTO THE HUDSON RIVER IN NYC**
 
After declining 3% earlier in the day, stocks reversed course after 13:00 EST to finish the day in positive territory.
 
"If you're a chart technician, you have to love today's price action," said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "The S&P bounced nearly exactly where the closing price was made back on Dec. 01, which was the overall low for the month, so it looks as if a pretty decent line of support has been established."
 
Gains were largest in the tech sector on a day when financials were hard hit. Bank of America fell over 20% to prices last seen in 1991 on news the bank is seeking additional funds from the government to help it with the takeover of former investment bank Merrill Lynch. Traders in Citigroup sent shares below $4 on dissatisfaction with its sale of brokerage unit Smith Barney to Morgan Stanley.
 
At the close of floor trading on the NYSE, the DOW was on 8212.49 after gaining 12.35 points (0.15%) while the S&P finished on 843.74, up 1.12 points (-3.35%). The NASDAQ was the big gainer for the day, closing on 1511.84 with a gain of 22.20 points (-3.67%). Bonds were little changed on the day, with the yield on the 2-year note rising 0.7 basis point to 0.717% while yield on the benchmark 10-year note rose 0.1 basis point to 2.203%. The dollar ended mixed after strengthening in morning as stocks declined before reversing course once bargain hunters came in, gaining 0.28% on the euro, 0.89% on the yen and 0.26% against Canada's currency as it fell 0.21% to sterling and 0.61% to Australia's dollar.
 
Crude oil for February delivery was recently trading down $2.43 (-6.46%) to $34.87 per barrel.
 
Gold for February delivery was recently trading up 60 cents (0.07%) to $808.80 per ounce.

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