500 point Dow rally in last hour

Obama named Tim Geithner, a widely liked professional, as the new Treasury Sec bringing out buyers in the last hour. Dow had been not far from break even during the day but shot up 500 in the last hour after the announcement taking it over the magic 8K line. But enthusiasm was limited. Biggest winners in the Dow were Exxon Mobil (XOM), Chevron (CVX) & 3MM (MMM).

•Tim Geithner of New York Fed Will Be Obama's Choice for Treasury Secretary


Dow Jones Industrials --- 1 week




Advancers were ahead of decliners 3-2 (rather meager all considered) & NAZ rose 68. Indices I follow had more muted responses. The S&P 500 FINANCIALS INDEX rose 4 but remains at a very depressed 129, the Alerian MLP Index slipped another 1½ to 152½ & Dow Jones REIT was up 7 (the last hour was worth 14 points from what was shaping up as another ugly day). Some junk bond funds were up maybe pennies, for them that's a big deal.

Markets breathed a sigh of relief with the announcement about the Treasury Sec. The last hour rally limited damage for the week. Dow started the week at 8497 & ended at 8046, down but a lot better than being down 1K for the week. Sharp moves powered by gut reactions are always suspicious. Next week, the Treasury Sec announcement will be history, back to corp & macro economic announcements.