Huge Rally Underway On Wall Street
The Dow Jones Industrial Average has rallied 180 points higher to 10,089. The S&P 500 has surged 1.48%, or nearly 16 points, to 1,072 and the Nasdaq is 27 points higher at 2,153. So what to make of today's big move?
It seems to me that investors are operating from a position of uncertainty right now. Stock valuations appear quite compelling. In fact, the market is now trading near inflation adjusted 1996 levels. Shares of very high quality companies can be purchased at reasonable prices. Earnings reports have been strong across the board.
On the other side of the fence, however, there are concerns about rhetoric out of Washington D.C., legislation, sovereign debt, the strong dollar, unemployment and a slowdown in China. This convoluted atmosphere is causing volatility in the markets. A strong case for bullishness or bearishness can be made by both sides of the market, and we may continue to see big swings in the coming days as a result.
