NEW YORK - Chairman of the Fed, Ben Bernanke told Congress Wall Street that the recession could end this year.In his semiannual report to the Committee of the Senate of the banks, Bernanke predicted the economy is possible, contracts in the first six months 2009. But he has also said that there is a reasonable possibility "of a recession will end this year. He warned that the takeover will be necessary, credit and financial markets operate.
Bernanke during the assessment of the economy has increased the pressure on the market, even after days of marketing was the big Dow Jones Industrial Average and Standard & Poor's 500 index was up almost 12 years, hardly a drop in stocks was not surprising. Stocks selloff attracted cheaper, because the dealers good business. In addition, some better than expected quarterly results from Home Depot Inc. for cooling some concern about the economy.
Stocks even before a speech by President Barack Obama. Suggested that, the investors hope to acquire a better understanding of the plans of the Government to support the industry, dealing with claims.
The White House said on Tuesday that Obama is more detail on his plans for stabilizing the financial system. It is also expected that the event, there is still much to do to the economy. The speech is for 9 clock, EST.
Attention to the stability of the financial system comes a day after the government to increase dramatically near the property of the nation, the banks, including Citigroup Inc, the Ministry of Finance of the United States, the Federal Reserve and other banking risks, regulators said Monday that the government can do the on the banks of preference shares to ordinary shares.
Investors are waiting for Obama's speech a better idea of how the government will in their efforts, the impact of the recession, is already in the 14th Month.
On the afternoon of exchanges, the Dow rose 151.81, by 2.1 percent to 7266.59. On Monday, the major indices by more than 3 percent, including the Dow, which fell 251 Points. It was the lowest in the vicinity of the first line since 7 May 1997.
Broader stock indicators are also on Tuesday. The S & P 500 index rose 19.79, or 2.7 percent to 763.12. On Monday, its lowest level since the end of April 11, 1997.
Nasdaq composite index rose 30.40, or 2.2 percent at 1418.12 on Tuesday.
The Russell 2000 for small business at 10:00, or 2.5 percent to 404.58.
Promoting the decline questions on approximately 2-1 on the New York Stock Exchange, where the total volume of 762.1 million shares.
Many analysts expect the market to remain volatile in the foreseeable future.
Ryan Larson, the host trading shares in Asset Management, said that the market in search of ideas in the Department of the Ministry of Finance stipulates, "stress test" of banks and the active toxic their books.
"The market is desperately in search of clues for restoring the rescue," he said.
Rich Hughes, Co-Chairman of the Portfolio Management Consultants in Los Angeles, said that the concentration of the stock market is likely to be the hope of the collisions or selloffs. Wall Street he was not based on the sad decline that is often necessary to make the investors in the market and lay the foundations for a sustained recovery.
"Fundamental rights are not there to what is sustainable," he said. "We do not surrender, you want to see what enthusiasm."
The market demand was difficult long-term investors. An investor, in 1997, has $ 50,000 in a fund after the S & P 500, not the money, the money would now be worth $ 46,256. However, the stocks tend to give better results after steep pullbacks and long-term yields are often given priority over other investments.
The prices of bonds fell Tuesday. The yield on the benchmark of the Ministry of Finance and 10 years, in addition to the price, to 2.77 percent to 2.76 percent late Monday. The performance of the period of three months, T-law as one of the safest investments, rose to 0.30 percent of 0.29 percent on Monday.
The dollar was with other major currencies, while prices rose.
Light, sweet gross by 65 cents to $ 39.09 per barrel on the New York Mercantile Exchange.
Home Depot is a loss, but the greatest detail renovated the expectations of the results, when the costs for the closure of four brands of the renovation. The camp is $ 1.79 or 9.6 percent to $ 20.50.
Target Corp. and Macy's Inc. said fiscal fourth quarter dropped to reduce the buyer about the purchase. Office Depot Inc. has a loss for the quarter. Target by 15 cents, or 0.5 percent to $ 28.28, while Macy's rose 78 cents, or 10.5 percent to $ 8.18.
JPMorgan Chase Co. rose 99 cents, or 5.1 percent to $ 20.50, on Monday after the end of the bar of his quarter dividend of 5 cents to 38 cents in the interest of preserving the capital for protection in the event of the current recession worse . The decision, the bank has 5 billion U.S. dollars per year.
Stocks fell in Europe after the collapse of Wall Street on Monday. UK FTSE 100 fell 0.78 percent, the German DAX index fell 0.73 percent, France, the CAC-40 fell 0.73 percent. Previously Japan Nikkei stock funds by 1.5 percent.
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