每日市场点评 --- July 8, 2008

The market rebounded sharply on this Tuesday. In fact, the S&P 500 rose more than 40 points or 3% from its pre-market lows and closed near the top by close. The Nasdaq was the best performer among the big three and advanced 50 points or 2.3%. The Dow, which was down as much as 60 points earlier, finished the session higher by 152 points. In today’s economic news, the pending home sales for May fell 4.7%, worse than a drop of 2.8% expected. April’s figure was revised higher to a gain of 7.1% from an initial estimation of 6.3%. For the second day in a row, crude price dropped sharply and provided much needed support to today’s rally.

Basic materials and energies were among the few sectors that ended the session lower. It was quite clear by now that money has been flowing out from the previous hot sectors since the end of the second quarter. But the 6-trillion dollar question now is which place money will move into next. On today’s winners’ list, we had names like financials and transportations. The CRB commodity index continued to slide and ended the session lower by 2.4%. The index has lost 5% in the past two sessions. The US dollar was higher against most major currencies. Treasuries were mixed with the yield curve flattened compared to yesterday. The VIX index tumbled more than 10% and closed barely above 23. The market breath was positive.