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Wall
Street rallied today as declining oil prices provided the needed
catalyst for bull investors to start buying once again. The Dow
jumped 152 points to 11,384, while the Nasdaq gained 51 points
to finish at 2,294.
As we have
written before, there will not be a substantial rally in the
financial markets until oil prices start to drop. Today was a
good beginning with oil prices falling over $5, but we need to
see further drops in the coming days.
Internet
stocks participated in the rally today with ecommerce stocks
doing particularly well. Leading the way was a nearly 10% gain
in 1-800-Flowers (FLWS) and an 8% gain in Bidz (BIDZ). Other big
winners included Overstock (OSTK), Tech Target (TTGT), The Nine
Ltd (NCTY), and Perfect World (PWRD) all gaining over 7%.
Small cap
internet stocks failed partake in the markets rally, with the
small cap sector ending down 3%. Autobytel (ABTL) fell over 11%
and U.S. Auto Parts (PRTS) fell 5%.
The
falling oil prices was felt the most in the airline stock
sector. The major airlines jumped a whopping 16% today with
Northwest Airlines (NWA) leading the way with a 31% gain.
At the time this article was
published, the author held financial positions in Bidz and
Autobytel.
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