The following excerpt is from Fox News
The markets continue to see volatility as the Dow opened almost 100 points lower amid more global jitters, but then climbed out of the red and posted strong gains that proved to be fleeting.
Technology stocks like Apple (AAPL: 256.84, 2.85, 1.12%) and rallying consumer discretionary stocks proved the markets an earlier boost as the bulls looked to build on Wall Street's best day in more than a year.
”We’re seeing a carryover from yesterday’s action. The bulls felt emboldened by the market not selling off materially from where we opened yesterday,” said Michael James, senior equities trader at Wedbush Morgan Securities.
Euphoria over a $955 billion bailout to contain Greece’s debt crisis and protect the euro significantly waned earlier on Tuesday as global markets tumbled, the euro renewed its slide and U.S. stocks opened lower. The action reflected skepticism the bailout will fix Europe’s underlying debt issues and caution in the wake of new signs China may need to soon hike interest rates to prevent its economy from overheating.
“China won't stop in trying to tame the inflationary pressures in their economy,” Peter Boockvar, equity strategist at Miller Tabak wrote in a note, referring to China as “the straw that stirs the global economic drink.”
The markets hit session highs earlier, with all three major indexes extending Monday's surge, which added 405 points to the Dow, its best day since March 23, 2009. Monday's buying binge pushed all three markets back into positive territory on the year after having sank into the red last week on the European jitters.
“The bullish case is that with the move from the ECB over the weekend, the biggest short-term risk to U.S. markets has been removed… and the selloff has presented some pretty compelling entry points across the board," said James, who added that he is still skeptical Europe's structural problems will be fixed.