Dow Jumps 124 Points as Oil Dips and Bank Stocks Rally

Stocks rose sharply Tuesday with the Dow Jones Industrial Average enjoying a triple-digit gain after oil prices eased and bank shares rallied on the possibility of further dividend payouts and share buybacks.

The Dow ($INDU) added 124 points, or 1%, to close at 12,214. The blue-chip index was up as much as 161 points in intraday trading before pulling back. The broader S&P 500 ($INX) rose 12 points, or 0.9%, to finish at 1,322. The tech-heavy Nasdaq Composite ($COMPX) gained 20 points, or 0.7%, to close at 2,766.

Oil prices dropped Tuesday after setting a 29-month high in the prior session amid reports that OPEC could step up production to make up for supply disruptions in Libya. Talk that the U.S. could tap its Strategic Petroleum Reserve and rumors that Libyan ruler Moammar Gadhafi may be looking for a way to step down also helped oil prices cool off. Benchmark West Texas Intermediate crude futures fell 42 cents to settle at $105.02 a barrel on the Comex division of the New York Mercantile Exchange (CME).

Bank stocks led the market higher after Bank of America (BAC), the nation's biggest bank by assets and a Dow component, said it would return more money to shareholders through share buybacks and dividends. Chief Executive Brian Moynihan told investors that BofA can earn between $35 billion and $40 billion a year in pretax earnings when the business normalizes and that he would seek to return "every dollar" of capital to shareholders. The CEO made the remarks at the bank's first investor day conference since 2007.

The allure of dividends and buybacks helped BofA gain 4.8% on the day. Dow financial stocks JPMorgan Chase (JPM) and American Express (AXP) also had robust gains, and financials were the best-performing sector of the S&P 500 Tuesday, rising 2%. Energy was the worst-performer, closing down 0.9% on the drop in oil prices.

The rush back to riskier assets hurt bonds and gold prices Tuesday. The yield on the benchmark 10-year Treasury note, which moves in opposite direction of price, rose to 3.54% from a prior close of 3.5% Gold futures fell $7.30, or 0.5%, to settle at $1427.20 an ounce in NYMEX floor trading.

In other corporate news, Brown-Forman (BF.B) said third-quarter earnings rose 30% to beat Wall Street's estimates, helped by stronger sales of Jack Daniel's and el Jimador brands, as well as overseas strength. Additionally, the Louisville-based company, also known for making Southern Comfort, raised its full-year outlook.

Safeway (SWY), the nation's second-largest supermarket operator after Kroger (KR), issued a 2011 earnings outlook of $1.60 to $1.80 a share, which was in line with analysts' average estimate. The company also said it would pay down $600 million in U.S. debt.

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Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

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Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

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March 13 2011 at 8:47 AM Report abuse rate up rate down Reply
fpfp040408

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March 09 2011 at 10:48 AM Report abuse -2 rate up rate down Reply
fpfp040408

Plus, I bought Nortel at .50 per share & sold it 8 months later at $3.78 ! An 800% return in only 8 MONTHS !

March 09 2011 at 10:47 AM Report abuse -1 rate up rate down Reply
1 reply to fpfp040408's comment
fpfp040408

I bought Facebbok stocks at $25. per share & they are now worth $1224

March 09 2011 at 10:43 AM Report abuse -1 rate up rate down Reply
1 reply to fpfp040408's comment
fpfp040408

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March 09 2011 at 12:19 PM Report abuse -1 rate up rate down Reply
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Here is Similar Story

After a rough opening session on Monday, stocks rebounded sharply on Tuesday. The Dow enjoyed a triple-digit gain after oil prices eased and bank shares bounced higher on the possibility of further dividend payouts and share buybacks.

March 09 2011 at 4:40 AM Report abuse +1 rate up rate down Reply
ronsjigslures123

I am a small investor and making tons of cash, its a no brainer when i bought silver eagals at 20 to 23 bucks each each one of those coins sell for 38 bucks today and will sell for 60 to 75 buck each in a short period of time, and i bought hundreds of that coin alone plus others. The no brainer is that when the price hits 60 to 75 bucks a oz. per coin i will sell 3/4 of the coins at NO cost to me, no fees, and when i sell the coins i will RECOVER WHAT I PAID FOR THEM PLUS THE PROFIT of 16 bucks each today and if i wait to 60 or 75 bucks well you do the math on each coin...nice pay check in a short time i would say its a no brainer to make money with NO cost except several safty deposit boxes, and they are cheap. Buy all the silver you can get your hands on and make a killing profit, when you deside to sell. Don,t you just love the American way.

March 09 2011 at 2:58 AM Report abuse +1 rate up rate down Reply
1 reply to ronsjigslures123's comment
ronsjigslures123

The heck with the stock market, 4 years ago i cash in my 401k, sold my extra truck, and started to buy silver in all forms, coins, bars,Canada Maple leafs,90%, 40% troy bags of coins, dimes,quarters, silver egals, and horded them in several safty deposit boxes .. i am making a few thousand bucks a week on my silver hord as silver is inching up and up, i bought silver egals at 18 bucks and 20 bucks each coin back then and now they sell for $38.00 each and going up little buy little each day. Thats 18 bucks profit as of today on all the SE,s i bought, The canda maple leafs im making 25 bucks profit off each 999.9% silver oz. coin and so on. It will hit 60 or 75 bucks a oz in the next 1 1/2 years, and it cost me nothing to buy and sell my stuff, not like stocks. If your a small investor buy as much silver as you can and make tons of extra money. Its a no brainer. I make thousands of bucks a week on my hord. For get gold silver is the best investment there is, forget stocks unless you have millions to buy, silver is a no braniner buy and wait a while and sell for a good profit. Buy now while prices are still resonable.

March 09 2011 at 2:51 AM Report abuse rate up rate down Reply
1 reply to ronsjigslures123's comment
Franco

Can't figure out why anyone is jumping.

March 09 2011 at 2:21 AM Report abuse rate up rate down Reply
inasctg56

reply to sandy: The increase in food is due to the droughts in Russia, Australia, and Africa as well as demand. As more people move to cities around the world demand increases. And health insurer costs went down for the first time in ten years, but do you think our rates will go down? Not without the healthcare bill being implemented at the federal and state levels and the gop is fighting against it.

March 08 2011 at 11:41 PM Report abuse rate up rate down Reply