6. October 28, 2008
Consumer Confidence Hits All-Time Low … Let's Buy Stocks!
Dow 9,065 (up 889 points); trading range, 958 points
Try to figure this one out: Consumer confidence reaches the lowest levels on record since the survey began 41 years ago. Home prices in 20 major metro areas fall 16% year-over-year and have been falling for 20 consecutive months. And the market rallies to post its second-largest gain of the year.
Huh?!?
The volatile session ended with the benchmark index almost 900 points higher as bargain hunting and short-covering ruled the day, with some help from strength in the overseas markets. A labor agreement at Boeing (BA), and better-than-expected earnings at U.S. Steel (X) and energy sector names Occidental Petroleum (OXY), Valero Energy (VLO) and BP (BP) also added fuel to the market's fire (pun intended).
