Stocks surge on bank plan----------well why wouldn't stocks surge when the government decides to spend up to a TRILLION of taxpayers dollars to buy up bad/toxic assets and then assume the bulk of the risk.........
Financial, energy stocks pull market higher
Stocks rebound as traders see promise in bank, energy stocks; jobless claims fall unexpectedly
Jun 4, 2009
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Traders are betting that an improving economy will reward banks and energy companies.
Stocks rose for the fifth time in six days Thursday after analysts raised their ratings on banks and oil prices rose again, making energy firms look increasingly attractive. Investors were also willing to take more chances on stocks after the government reported that the number of workers continuing to receive unemployment benefits unexpectedly fell for the first time in 20 weeks.
The drop in unemployment rolls, as well as in first-time claims for jobless benefits, gave investors another bit of hope that the economy is finding a more stable footing. The idea that the economy is halting its slide has driven a powerful rally that has lifted the Standard & Poor's 500 index 39.8 percent in three months.
The data arrived a day ahead of the government's monthly tally of job losses — often seen as the most important report on the economic calendar. The unemployment rate stood at a 25-year high of 8.9 percent in April and economists expect it will rise to 9.2 percent when the May report is issued Friday.
Investors are looking for any sign that unemployment is ebbing because that could help shore up consumer spending, retail sales and the housing market.
"Things seem to have stabilized and people are hunting for any sort of information they can get to determine the next move in the market and the economy," said Jim Sinegal, equity analyst at Morningstar in Chicago.
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