Wall Street got some good news from Citigroup, and responded with a huge rally.
Led by financial stocks, the market made its first big move upward in weeks Tuesday after Citigroup Inc. said it had operated at a profit during the first two months of the year. All the major indexes soared more than 3.5 percent, and the Dow Jones industrials shot up more than 250 points.
Still, while word of Citi's performance at least temporarily broke a months-long torrent of bad news from the banking industry, analysts weren't ready to say the stock market was at a turning point and about to barrel higher.
Financial stocks have been a primary driver in a market collapse that has left the major indexes at their lowest point in more than a decade. Every report of loan losses and asset writedowns have sent banking stocks to incredible lows -- Citi fell below $1 a share last week. And fears that hundreds of billions of dollars in government bailouts wouldn't be enough to save the big banks exacerbated the fears on the Street.
Ben Halliburton, chief investment officer of Tradition Capital Management warned that the advance was likely just another bear market rally. Short-lived rallies are common during periods of extended declines as the market searches for a bottom.
But investors were further encouraged by Federal Reserve Chairman Ben Bernanke who called for a revamp of the country's financial regulatory system. Speaking before the Council of Foreign Relations, Bernanke said "too big to fail" companies must be subject to more rigorous supervision to prevent them from taking on excessive risk. Bernanke's remarks come as the Obama administration and Congress begin to devise their overhaul strategies.
The Dow Jones industrial average jumped 259.02, or 4 percent, to 6,806.07. The Standard & Poor's 500 index added 29.62, or 4.4 percent, to 706.15, while the Nasdaq composite rose 62.04, or 4.9 percent, to 1,330.68.
Yesterday’s Top Performing SmallCapVoice.com stock:
Green Earth Technologies (Pink Sheets: GETG) was a SmallCapVoice.com top performer moving up over 18% on trading volume of 164,901 shares.
Green Earth Technologies announced today that they have been granted the "Donut," an API Service Symbol for the SAE 5W-30 weight of their green motor oil, G-OIL(TM). G-OIL ultimate biodegradable green motor oils met and passed all the engine test criteria for The American Petroleum Institute (API) SM Certification back in November, becoming the first and only bio-based motor oil to receive such distinguished honors. Now, receiving the official Service Symbol from the American Petroleum Institute, Green Earth Technologies will utilize the "Donut" on their product packaging and ship G-OIL to stores nationwide in the upcoming months.
Green Earth Technologies produces G-branded superior performing green products made with American-Grown Base Oils that utilize the power of nanotechnology to deliver environmentally friendly products with no compromise... meaning, consumers can now "do their part" without having to give up performance or value: Save the Earth - Sacrifice Nothing. GET products are now available at Home Depot, Target, VIP, National Auto, Fred Meyer, Kroger, Albertsons, participating ACE & True Value dealers, Redners, Trader Horns, The Andersons, Biggs, Bennett Auto, Frank's Auto Supermarket and Amazon.com.
Today’s SmallCapVoice.com Hot Stocks to Watch:
Dakshidin Corporation (Pink Sheets: DKSC)
SmallCapVoice.com, Inc. announced today that a new audio interview featuring Dakshidin Corporation, producers of the world's most powerful water pumping windmill, is now available at SmallCapVoice.com. The interview can be heard here at http://smallcapvoice.com/blog/2-24-09-audio-interview-with-dakshidin-corporation-otcpk-dksc/.
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Stuart T. Smith