Mid-Day Recap: Equity Gains Erase Last Week’s Losses

by devteam October 6th, 2009 | Share

A global advance in equities helped US stocks continue to rally on Tuesday. The last two days have seen stocks rise enough to erase losses from the previous two weeks. Indeed, the S&P 500 is just 15 points shy of the 2009 peak reached on Sept. 22. 

As of 1:00, the S&P 500 is up 1.48%, or 15 points, to 1,056. The Nasdaq is up 1.74% to 2,104, and the Dow is trading 1.39% higher at 9,733.

Commodities are also the rise. WTI crude has been driven up $1.40 to $71.81 per barrel, while gold has added $22.80 to a new record high at $1,040.60 per ounce. Meanwhile, the US dollar remains weak against a broad array of currencies, in part due to a report from the UK’s Independent stating that different Gulf states were in secret talks with Russia, China, Japan and France to replace the greenback in trading crude oil. 


No major data from the US hit markets this morning, but third-tier data from the retail world said sales were rising last week. The weekly report from the International Council of Shopping Centers & Goldman Sachs said sales were up 1% compared to the last year and 0.3% compared to the prior week. 

“A bout of cooler weather helped to spur customer traffic, especially at department stores and discounters, and helped the month to finish on a positive note,” said Michael Niemira, chief economist at the ICSC. Despite those gains, he said September sales were down around 2% overall. 

That’s in line with the Johnson Redbook results released today, which said sales in September declined 2.2%, beating forecasts of -2.9%.

Markets are also responding positively to the Royal Bank of Australia’s surprise decision to hike short-term interest rates 25 basis points to 3.25%. 

“It is clear that there is a psychological bid in the market as the symbolism of the first rate hike from a G20 nation is trumping any negative considerations that go hand-in-hand with higher rates,” said Patrick O'Hare of 

O’hare called the decision “another confirmation that the world is back from the brink of economic disaster.” 

Benjamin Reitzes, economist at BMO Capital Markets, said the move would help strengthen the Aussie dollar against the greenback. “With the Fed not expected to start tightening until late-2010, continued rate hikes likely paves the way for the Aussie $ to eventually hit parity vs. the greenback.”

With renewed appetite for equities, yields for Treasuries are slightly higher across the curve. After reaching as low as 3.14% late last week, the benchmark 10-year yield is two basis points higher at 3.26%, while the 30-year yield is up four basis points to 4.07%.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...