Wall Street recovering after Monday by Zuzana Zelenakova

Financial stocks came up Tuesday after a record drop from the previous day. The Dow Jones Industrial average rose 270 point, that is 3,3 percent to 8,419.09 and thus catching up with 7,7 percent loss from Monday. The US market is currently being swept from side to side by the situation concerning US automakers. While Ford Motor Co. Chief Executive Alan Mulally stated that the company has enough money to go through the next year and might not need to use government rescue package General Motors Corp. needs $12 billion in government loans and Crysler LLC said it needs $7 billion by the end of the year. When it comes to the sales of the automakers in general they all more or less have experienced drop in customer spending. Ford reported 31 percent decline, Toyota 34 percent and finally General Motors Corp. 41 percent. Investors were a bit relieved not only by Ford´s statement but also by the news from General Electric Co., which said that it will most likely be able to pay a dividend. Also the Federal Reserve has had its share in this lift for the investors announcing that the duration of the key programs focused on restoring the financial sector will be extended. "I don't know where the bottom to all this is," said Alexander Paris, economist and market analyst for Chicago-based Barrington Research. "In these kind of markets, all you have to do is get enough confidence to hold your nose and ignore the bad news to send the market higher." The Standard & Poor rose 3,99 percent Tuesday and Nasdaq gained 3,70 percent. But the time has not come yet for too much optimism according to some. "There's too much talk of valuations, people jumping in on the bullish side after a bounce," said Ryan Detrick, strategist at Schaeffer's Investment Research. "And that's not how bottoms form, and that's not going to take this market continually higher."


related story: http://news.yahoo.com/s/ap/wall_street;_ylt=AqsaDsHT2o_uoKwtQaF96i6s0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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