Thursday, May 27, 2010

Intra-day action

Nice day today for most stocks, except for AlphaNinja holding Monsanto (MON), who has cut guidance yet again, as the glyphosate outlook worsens beyond their (and my) earlier estimates.

The DJIA is up 201points, to about 10,175...though with the volatility of late, who knows where it will finish the day.  One headline put it this way:
"Wall Street Surges on China Comments"
I think it has more to do with positive news coming from the Gulf of Mexico.  Various reports are coming in from the Coast Guard and other channels that the "top kill" procedure begun within the last couple days is proving successful at plugging the well.  Along with that good news is the bad news that the well has probably been leaking between 2 and five times the amount of oil previously estimated.  Fortunately, this is NOT heavy sludge like the type spilled by the Exxon Valdez in 1989.  Shares of BP, RIG, and others involved are up sharply on the news, and my sense is that this success is giving the general market a boost as well.


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