Based on the huge gains in the market today, it sure seems like investors were making up for yesterday’s huge sell-off. The Dow gained 279 points (3.51%) and the S&P 500 advanced 35 points (4.35%). The jump in the market was spurred by the very same financial stocks that were the basis of the yesterday’s market collapse.
The banks have brought a new meaning to the word volatility. Both Bank of America (BAC) and Citigroup (C) gained about 31%. Wells Fargo (WFC) moved up 17% and JP Morgan Chase (JPM) jumped 25%. It’s impossible to tell whether yesterday’s financial fall was too strong or if today’s climb is exaggerated, but regardless there is one obvious conclusion: we are far from finding stability of any kind in the markets.
The other piece of big news today was IBM’s surprising success. The tech company reported good news with the release of its 4th quarter earnings. IBM earned a 12% increase in its 4th quarter profits year-over-year. Investors jumped on the company’s success and the stock saw an 11.5% increase in price.
It was very heartening to finally see some positive movement in the market today. And while the process of finding a bottom is still in progress, it’s comforting to know that the market can rally after suffering in such a bad way the day before. Hang in there.
-Matt Schwartz
College Trillionaire
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