Markets Rally; Investors Suspicious of Low Volume
DARYN KAGAN, CNN ANCHOR: We go from trade issues to trading stocks. The market makes a big comeback, but will that rally continue today? The Dow gained nearly 228 points yesterday. Investors returned from the holiday weekend looking for some bargains. The Nasdaq soared 254 points, it was the largest one-day percentage gain ever for the Nasdaq and the second biggest point gain.</s>BILL HEMMER, CNN ANCHOR: More beef and bananas now. The numbers were indeed high, but a trading volume was less than average in that rally. Joining us more, to talk about that from CNNfn, is Bill Tucker, he is live up in New York. Hey, Bill, good morning to you.</s>BILL TUCKER, CNN CORRESPONDENT: Hey, good morning to you, Bill.</s>HEMMER: I guess the Achilles heel that a lot of investors are talking about yesterday was that volume, it was less than average. Is that what we're hearing? and if so, what's the indication from that yesterday?</s>TUCKER: The volume was a little bit of a rub, because it was a pick-up from recent sessions. But it is way down of what we've been used to seeing, less than a billion shares on the New York Stock Exchange, just over a billion shares on the Nasdaq. And so, analysts, when they take a look at those really impressive numbers, and they were nice looking numbers yesterday, say: Look, if there's a problem here, it's that the rally didn't have as much conviction, that's their code word for volume, as they would like to see. And, Bill, we've got a couple of things that might be some stumbling blocks for the market coming up. We've got a lot of economic reports due out this week, and that can -- may get in the way of this growing belief that perhaps sometime in June the Fed may not raise interest rates. This has long been anticipated.</s>HEMMER: The other thing I picked up a lot, listening to analysts, was the talk about the summer rally. Is there a traditional summer rally? Is this the start of it? Do we know that? In years past have we seen things spike when it comes to June?</s>TUCKER: Yes, as a matter of fact, we have, this traditional summer rally that you hear analysts talk a lot about, Bill, typically takes place in June into early July, peaks out in July. Stocks start to drip down from there both in terms of coming down off their highs and in terms of trading volume. Because people go out on vacation and trading gets very slow in the latter part of August. So the summer rally is actually early, mostly the month of June, and then we get the doldrums there.</s>HEMMER: Yes, tech stocks took a big hit yesterday, really climbed upward after they had been down close to 40 percent. What are investors saying? Is now the time to jump in or tread at your own pace?</s>TUCKER: Well, you know, it's very, very interesting, because you've got those nice looking numbers yesterday. You do have the markets considerably off their high, the Nasdaq, at one point, down 37 percent from its high back in early March. A lot of people think these prices look very attractive but, Bill, looking at the futures this morning, it looks like there are going to be some people coming to this market and sell and take some profits off of yesterday's rally. So, start of the session today looks like we're going to see a little bit of negative trend in the prices.</s>HEMMER: All right, we'll check it out, Bill Tucker in New York, nice tie, Bill.</s>TUCKER: Thank you,</s>HEMMER: We match.</s>TUCKER: Looks a lot like yours, don't we?</s>HEMMER: Thank you, Bill, see you a bit later.