Lower oil prices sent stocks higher today. Dow rose 130, advancers ahead of decliners 5-2 & NAZ had a very good day, up 43. All this activity on just over 1B in volume on NYSE, very low. New highs were about equal to new lows at 70. Much of the enthusiasm for stocks came from lower oil prices. After reaching a new record above 126, it pulled back to 124.23 down 1.73. Selling came from it being oversold & the earthquake in China caused selling on the theory that devastation will bring lower demand from China & its surging economy. NAZ had an excellent day helped by the new BlackBarry from RIMM, up 9.20. James Dimon, head of JP Morgan Chase (JPM), a Dow stock, said the US recession is just beginning even if the credit crisis is perhaps 75% over.
Hank Greenberg, former head of AIG urged a delay in the annual meeting because it was in "crisis." AIG, largest insurance company in the world & a Dow stock, was down 1.91 to 38.37, a 10 year low. This story may play out bigger in future markets.
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