Dow Sees a 600 Point Swing Wednesday

CHATTANOOGA, TN (WDEF-TV) – It’s been another eventful day on Wall Street, where stocks surged higher in the early going — only to see those gains evaporate by late afternoon.
This morning’s gains came as traders around the world welcomed the decision by China’s central bank to cut interest rates.

ANALYST "People need to be reminded that we’re entering a pretty volatile seasonal period for for the markets…September, October."

And volatility was the key word today as the Dow opened up 400 points, but ended up losing 200 by the close.
Once again China gets the blame.

CHRISTOPHER HOPKINS, V.P., BARNETT & COMPANY "This morning, not only did we have another sell-off in China…much like Sunday night, we had a sell-off in Japan as well…and yet, in the U.S. the markets opened up very strongly this morning."

Investors changed strategy as the day wore on, starting with some new players.

CHRISTOPHER HOPKINS "We saw a lot of money come into the market…they kind of saw an opportunity to buy things on sale."

But big investors decided to take cover while newcomers tested the strength of the early rally.

CHRISTOPHER HOPKINS "When you see people who have cash waiting to put it to work and they jump on the opportunity to do rather than run away and say ‘well I’m scared..I’m going to see what happens’..I think that was a positive development."

Oil prices are up, but U.S. crude is still trading below $40 a barrel.
That will play a role as the markets seek direction for the rest of the year.

CHRISTOPHER HOPKINS "Our opinion is that the global economy depends upon energy, and we’re now the big producer of energy."

Wednesday may also be full of surprises because of worldwide uncertainty.