Stocks Preparing to Stage Comeback

At the end of a particularly choppy session, Wall Street is poised and ready to stage its comeback. Stocks were rallied last Friday which signaled the end of this choppy session on a much higher note because more investors had been eyeing Bank of America’s federal bailout. The Citigroup also had plans to separate its businesses and have been gearing up for the inauguration of the new president in the coming week. The stock figures at that particular moment showed that the Dow Jones had an industrial average (INDU) that gained point eight percent. S&P or Standard and Poor had a 500 index which also added yet another point eight percent while the composite of NASDAQ was able to climb up yet another one point two percent.

Some Prospective Projections in the Coming Week

The inauguration next week will also bring with it some big batches of their fourth quarter earnings, starting with fifty five of the Standard and Poor’s 500 thanks to the report. Some earnings are also on track at the moment and will have fallen to twenty point two percent starting from a year ago. This was according to Thomson Reuters. Since there have been a lot of weak results which had been priced right through the market, there has been a reaction to earnings which will be muted, according to Will Hepburn who works as the chief investment officer at the company Hepburn Capital Management as well as the acting manager of Kids Fund. The coming week will be laden with holidays of sorts, as the trading week has been shortened and all financial markets closed down on a Monday to celebrate Martin Luther King Jr. Day. The following day, Tuesday, would be the Inauguration Day of Barack Obama as he is sworn in as the forty forth president of the United States of America.

Brief Stock Rally Coincides with Inauguration

The momentum brought about by the new president who will be taking office soon is pretty much staged to coincide with a shortened rally of the stock market. Then again, according to analysts, there has always been a honeymoon period wherein everyone is inclined to give the big guy his much-deserved break. Hepburn adds that there is still the partisanship but that some other people are also rooting for him and cheering him on to do a good job. The momentum of the new president taking office is likely to coincide with a brief stock rally, he said. "There's always a honeymoon period, where everyone gives the guy a break," Hepburn said. "There's partisanship, but there are also a lot of people rooting for him to do well." He also adds that some stocks can also benefit from even more positive seasonal factors which will most likely occur during this time of the year.