Posted By RichC on August 9, 2011
Trying to be an optimist as equity markets near their 9:30 opening. Who knows how raucous the trading day will be after such a bit down day yesterday (see below). According to “watchers,” we are the the most oversold in stocks in decades — odd considering the fundamentals for most companies and banks aren’t that bad when looking at the corporate balance sheets. Hanging on …
Dow Jones Industrial Average futures ran up 140 points, or 1.3%, to 10866, or more than 450 points above the lows seen in overnight electronic trading. The Dow fell 635 points on Monday, the sixth-biggest point drop in its history, to close at a 10-month low.
The blue-chip index fell beneath 11000 for the first time since November in the wake of Standard & Poor’s downgrade of the U.S. government’s credit rating, as investors continue to fret over government debt and the possibility that the economy slides into another recession.
Standard & Poor’s 500-stock index futures climbed 17 points, or 1.5%, to 1129 and Nasdaq 100 futures advanced 34 points, or 1.6% to 2071. Changes in stock futures don’t always accurately predict stock moves after the opening bell.