Thursday, June 5, 2008

Retailers lead big market gains

This was one of those days all you had to do to find a winner was throw a dart. Dow was up 213, advancers over decliners almost 4-1 & NAZ was up 47. What was perceived as good retail sales numbers for May brought out buyers in droves. The sales figures were better than expected (beating lowered expectations), but not exceptional. Stores with higher priced merchandise did not do well, instead the discount types (like Wal-Mart) led the way up. Wal-Mart, (WMT), Macys (M) & COSTCO (COST) helped the lead the charge, each gaining 4%. Meanwhile, oil is back in the news. Oil rose 5.49 to 127.79 on a weaker dollar. Oil bears can not take command of oil!

Earlier in the day, a FED official said banks continue to face tough times. He predicted there will be more need for banks to raise added capital which means divs may get punished. An analyst from Goldman Sachs said Wachovia (WB) will halve the div. Wachovia was even as was Bank of America (BAC) on this strong rally day. Enjoy today's rally!

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