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Record point rally for Dow & market views

After suffering one of the worst down weeks in US share trading history (last week's stock market decline was one of the worst on record), the Dow Industrials and S&P 500 both staged magnificent one-day rallies Monday.

More on this from Bloomberg:

"U.S. stocks staged the biggest rally in seven decades on a government plan to buy stakes in banks and a Federal Reserve-led push to flood the global financial system with dollars.

The Standard & Poor's 500 Index rebounded from its worst week in 75 years with an 11.6 percent advance, its steepest since 1939, and the Dow Jones Industrial Average climbed more than 936 points. Morgan Stanley soared 87 percent after sealing a $9 billion investment from Japan's Mitsubishi UFJ Financial Group Inc. Alcoa Inc., General Motors Corp. and Chevron Corp. climbed more than 20 percent each as all 10 industries in the S&P 500 added more than 7 percent.

The S&P 500 rose 104.13 points to 1,003.35. The Dow increased 936.42, or 11 percent, to 9,387.61, eclipsing its previous record 499-point gain in March 2000 and posting its best percentage advance since March 1933. The Nasdaq Composite Index increased 194.74, or 12 percent, to 1,844.25. Thirteen stocks gained for each that fell on the New York Stock Exchange."

Guess the markets really liked the recently discussed Treasury plans to buy ownership stakes in banks.

Still, as Bear Mountain Bull points out, we'll need a bit more upside action during the rest of the week to make up for recent losses in the Dow.

More on today's market action, and plenty else in our related articles and posts section below.

Related articles & posts:

1. "Market Wrap - 10/13/2008" - Bear Mountain Bull.

2. " 'Ridiculous' estimates persist amid perception of US recession" - Bloomberg.

3. "Marc Faber says global economic slump is 'unavoidable' (Video)" - Bloomberg.

4. "Chanos shorting fewest financial stocks in four years (with Video)" - Bloomberg.

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