Wall Street rally erases S&P 500 index losses for the year

[one...two...tree 2,762]

By TIM PARADIS and SARA LEPRO, AP Business Writers

NEW YORK – The Standard & Poor's 500 index is up for the year. And for once, it was the housing market that sent stocks soaring.

The S&P 500, considered Wall Street's most important indicator, bounded up 3.4 percent Monday and erased the last of its losses for 2009. And the Dow Jones industrials shot up more than 200 points and had their first finish above 8,400 since Jan. 13.

Two months ago, an S&P 500 in positive ground would have seemed impossible, with the stock market having fallen to 12-year lows on fears of a worsening recession. Monday's rally was led by the same financial and housing stocks that were decimated by the credit crisis and the sinking economy, and it added more momentum to a stunning rally that began March 10.

A double dose of good housing news ignited the advance: Pending U.S. home sales rose more than forecast and had their second straight monthly gain, while construction spending rose unexpectedly in March after five straight declines.

more...

http://news.yahoo.com/s/ap/20090504/ap_on_.../us_wall_street

[scandal 951]

It's a dead cat bounce in the middle of a nasty bear market that's not close to bottom. Trade on it!

[I AM NOT THAT GUY 5,715]

It's a Bear Rally until it gets over around 9400. Look for the big sell off tomorrow.

But, then again, I would love to be wrong!

Edited May 5, 2009 by Mister_Bill

[peejay 327]

Wall Street rally erases S&P 500 index losses for the year

I wonder if Obama will blame Bush for that?