CNN has the story by Alexandria Twin:
Stocks struggled Tuesday, as investors welcomed the government's plan to spend $250 billion to buy stock in banks, but opted to step back after the previous session's massive advance. Credit markets eased a bit, with a key overnight bank lending rate falling. Treasury prices slumped, raising the corresponding yields. The dollar fell against the euro and gained versus the yen. Oil, gold and gas prices eased. The weakness Tuesday was a little bit of buyer's remorse after Monday's historic rally, said John Wilson, chief technical strategist at Morgan Keegan. "After a day like yesterday, you'd expect a little to come off the table."
The Dow rallied 936 points Monday, its best one-day point gain ever, on bets that the worst of the credit crisis is over. Investors welcomed more specifics on the $700 billion bank bailout plan as well as a series of global initiatives aimed at loosening up credit. The S&P 500 rose 104 points, its best single-day point gain ever. The Nasdaq's jump of nearly 195 points was the 10th best ever.
Last week was the Dow's worst ever, ending a stunning eight-session selloff that cut 2,400 points and 22% off the blue-chip indicator. The selling erased $2.4 trillion in market value from the Dow Jones Wilshire 5000, the broadest measure of the stock market.
In the short term, market pros will be looking for signs as to whether last week's lows marked a bottom for the bear market.
Rico says there's a lot of blood on the floor (little of it his, fortunately), but hopefully it will all come back...
CNN has the story by Alexandria Twin:
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