American Stocks Enjoy a Breath of Fresh Air in Today's Early Trading After Hitting an Eleven Years Low Yesterday!!!

Stock markets in the United States fell yesterday to an eleven years low as woes from global recession continued to dominate the markets, while fears over the outlook for Citigroup led financial stocks to rout, also the failure of the U.S. Senates to reach an agreement for bailout plan to the auto industry further put downside pressures, while falling oil prices meant darkness to investors, who couldn't find anywhere to run as all sectors tumbled to the ground.

The S&P 500 index declined yesterday by 6.7% to hit its lowest level in 11 years, the Dow Jones Industrial Average was also down by the end of yesterday's session by 5.56%, while the NASDAQ Composite index tumbled 5.1%.

However stocks rebounded back in today's early trading due to short covering so far, as the confidence wave that dominated earlier today in Asia and Europe soon faded with all European indices going back in red territories.

Citigroup will be sold according to reports announced today, this somehow boosted confidence especially after Fannie Mae and Freddie Mac announced that they will suspend foreclosures and evections over the holidays. Also the rebound in oil prices helped energy stocks regain some of the losses which were acquired yesterday and all this week as oil prices dropped below the $50 mark per barrel for the first time in 3 years.

Citigroup shares fell yesterday by 26% to close below $4 per share which was the lowest level since 1994, noting that the total market value for Citigroup now fell to $26 billion compared with $274 billion at the end of 2006.

The Dow Jones Industrial Average rose so far 89.44 points by 1.18% to reach 7641.73, while the S&P 500 index rose so far 12.39 points by 1.65% to 764.83, the NSADAQ Composite index also rose 23.12 points by 1.76% to reach 1339.24, data as of 09:54 New York Time.

Also today President Bush signed an extension to unemployment benefits with at least 7 weeks nationwide, while the legislation also included an extension of 20 weeks in states with high unemployment rates, the total value for the bill which was passed by the U.S. Senates yesterday will be $6 billion.

Goldman Sachs released new projections for economic growth in the United States, as they expect growth to contract by 5% in the last three months of this year, while they also expected contraction in the first and second quarters of next year by 3% and 1% respectively, Goldman Sachs also expects unemployment rate to edge up to 9% in 2009.

Goldman Sachs stocks dropped yesterday below their Initial Public Offering price of $53 per share to take the total market valued down to $25 billion compared with $105 billion back in October 31, 2007, as expectations mount over the outlook for the company which is expected to report their first loss over the quarter since the credit crisis began last year.

General Motors which recently came under fire with expectations mounting the auto giant might be going bankrupt announced today further cuts in production in a bid to withstand the worst environment in more than two decades, GM failed so far in convincing the U.S. Senates to provide a lifeline for the deteriorating auto industry, which in case of GM failure will send the economy into a deeper recession considering also that unemployment will indeed skyrocket as a result.

Investors are still worried that slowing major economies will send global growth into the depth of a protracted recession, as so far all measures taken failed to restore stability in the financial markets, and rather investors indulge in a riot that sends everything down to the ground.

Confidence remain the key issue here, investors don't have faith anymore in world financial markets, red colors all around the floor is now becoming the usual scene, while everyone are waiting for the bottom which seems to be nowhere near yet, but all we can do now is hope, that this nightmare will end soon before it consumes all of us!!!