Rally's legs may wobble if gains based on short-covering

Date: Thu, Mar 19, 2009 at 5:01 PM
Rally's legs may wobble if gains based on short-covering

Some of the recent rally in the market's most beaten-down stocks, such as
financials, may be a result of investors covering their short positions,
raising questions about the long-term endurance of the current climb.

FEARS GROW AS MORE CONSUMERS JUST A PAYCHECK OR TWO FROM RUIN

Americans are in a collective state of financial depression as many admit they
could only cover their bills for two months at most if they found themselves
suddenly jobless, a nightmare more and more worry may come true.

ECONOMIC REPORT: CONTINUING JOBLESS CLAIMS JUMP BY 185,000 TO RECORD 5.47
MILLION

The number of people collecting state unemployment benefits jumps by 185,000 to
a record seasonally adjusted 5.47 million in the week ending March 7, while new
claims dip by 12,000 to 646,000 in the week ending March 14, the Labor
Department reports.

U.K. REGULATOR FORCES BAA TO SELL GATWICK AND STANSTED

The U.K. Competition Commission on Thursday orders airport operator BAA to sell
three of its seven British airports, including Gatwick and Stansted in London,
but the company says this may be impractical and it will consider an appeal.

MORTGAGES: AVERAGE 30-YEAR MORTGAGE FALLS BELOW 5% TO NEAR-RECORD LOW

Rates on fixed-rate mortgages dropped to near record lows this week, with the
30-year fixed-rate mortgage making an encore appearance below 5%, according to
Freddie Mac's weekly survey of conforming mortgage rates, released on Thursday.