Buy the Ticket. Take the Ride.

Volatility dominated the capital markets today as Stock and Bonds flip flopped between negative and positive several times each with Stocks emerging as the winner when the trading day ended.

Fed Chairman Bernanke spoke on Capitol Hill today on the economy and said that the Fed would take necessary steps to grow the economy. The Dow was down 250 points at one point, then traded back to unchanged, then down 200 before closing up 150 points. Mortgage Bonds traded the opposite way of Stocks during the session but at one point Stocks and Bonds were both trading lower. But around 2:30 – 3:00pm ET, a report that EU finance ministers are looking at ways of coordinating to recapitalize European financial institutions pushed Stocks well into positive territory near the close.

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It’s a great time to own Gold

It’s a great time to own Gold : Stock markets were unchanged today giving the Bond markets a reason to run higher. The 3.5% coupon jumped 25bp to end at 101.56, but ended below resistance levels set last October. Tech shares were sold aggressively today and pushed money into Bonds and utility related stocks. The Dow saw a meager gain of 4.28 to end at 11,410.21, the S&P saw a paltry gain of 1.13 to 1,193.89 while the Nasdaq dropped 11.97 to end at 2,511.48. Oil saw a gain of 93 cents to $87.58/barrel on lower inventories while Gold closed at a record $1,791.20 up $8.80. Tomorrow’s data includes Initial Claims, CPI, Philly Fed Index and Existing Home Sales.

Stocks rally after surprisingly strong growth in U.S. and Chinese manufacturing

NEW YORK (AP) — Stocks jumped Wednesday after surprisingly strong growth in U.S. and Chinese manufacturing allayed some of the worries that had been building over the global economy in recent weeks.

The new reports snapped a string of disappointing economic data that sent stocks slumping in August. The Standard & Poor’s 500 Index, the benchmark most widely used by professional investors, lost 4.7 percent in the month, its worst performance for the month since 2001.

The Dow Jones industrial average jumped more than 220 points on the first day of September trading. Broader indexes also rose more than 2 percent. With investors pouring into stocks, Treasurys fell and interest rates rose.

The Institute for Supply Management said manufacturing activity in the U.S. rose in August, in contrast to regional reports from recent weeks that pointed to a slowdown in growth. Economists had expected a decline.

Daniel Penrod, senior industry analyst at the California Credit Union League, said manufacturing reports have become increasingly important because they are a leading indicator for whether companies might start adding new jobs. Investors will be closely watching the Labor Department’s monthly report on employment, which is due out on Friday.

“If manufacturers ramp up … it’s going to require hiring,” Penrod said. “Getting closer to that threshold (of hiring) is vital to the economy.”

The pace of growth in China’s manufacturing sector also picked up in August, according to a new report, even though economists expected a pullback. Overseas markets also got a lift Wednesday when Australia said its economy grew in the second quarter at the fastest pace in three years.

In morning trading, the Dow rose 222.89, or 2.2 percent, to 10,237.53. The Standard & Poor’s 500 index rose 26.16, or 2.5 percent, to 1,075.49, while the Nasdaq composite index rose 53.86, or 2.6 percent, to 2,167.89.

About 12 stocks rose for every one that fell on the New York Stock Exchange, where volume came to 230.5 million shares.

The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.60 percent from 2.47 percent late Tuesday. That yield helps set interest rates on mortgages and other consumer loans.

In corporate news, Burger King Holdings Inc. jumped on reports it could be taken private. Shares of the fast food chain jumped $2.52, or 15.3 percent, to $18.98.

Apple Inc. shares jumped ahead of an event later where it is expected to roll out updated iPods. It rose $7.35, or 3 percent, to $250.45.

Australia’s S&P/ASX 200 index jumped 2.1 percent on the upbeat growth report. Hong Kong’s Hang Seng and Japan’s Nikkei stock average both climbed on the strong Chinese manufacturing data. Major European markets surged by more than 2 percent in afternoon trading following the strong economic data in the U.S.

Stocks Rally after Holiday

NEW YORK (AP) — Stocks rose Tuesday after investors tried to recover some of the big losses that piled up in recent weeks following a string of disappointing economic reports.

The jump in stocks came after investors looked past a report that growth in services businesses slowed last month. The Institute for Supply Management, a trade group of purchasing executives, said its index of services companies fell to 53.8 last month from 55.4 in May.

Economic reports have routinely fallen short of economists’ forecasts in recent months. That has investors worried that the growth is not coming as quickly as expected and any expansion will be slow for a prolonged period.

Overseas markets rose as investors found stock prices more reasonable after the recent sell-off and Australia’s central bank provided a positive forecast for the country’s economy.

Australia’s economy is heavily reliant on exporting raw materials, so growth there has helped the industry. Energy and material stocks rose in early trading.

In midmorning trading, the Dow Jones industrial average rose 152.01, or 1.6 percent, to 9,838.49. The broader Standard & Poor’s 500 index rose 18.17, or 1.8 percent, 1,040.75, and the Nasdaq composite index rose 42.23, or 2 percent, to 2,134.02.

U.S. stock slump steepens along with euro’s

(MarketWatch) — U.S. stocks sunk further late Friday, with the Dow Jones Industrial Average off 320 points as investors sold euros and equities ahead of the weekend. “Some people are having a hard time stomaching it any more and are picking up their money and going elsewhere,” said Howard Ward, portfolio manager at the Gamco Growth Fund. The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (DJIA 9,931, -324.06, -3.16%) was most recently off 318.39 points at 9,937.49. The S&P 500 Index /quotes/comstock/21z!i1:in\x (SPX 1,065, -37.95, -3.44%) shed 36.89 points to 1,065.94. The Nasdaq Composite /quotes/comstock/10y!i:comp (COMP 2,219, -83.86, -3.64%) declined 79.30 points to 2,223.73.