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Techs lead weak effort at a rebound

Tuesday, April 08, 2014 - 02:19

April 8 - Beaten down tech stocks and others like Tesla rebounded after days of negative sentiment but the rally fizzled into the close; Alcoa reports; Twitter changes look; American Airlines details weather damage. Conway G. Gittens reports.

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Wall Street recovers from a three-day assault but it's hardly anything to get excited about given the magnitude of the sell-off. The rebound lost most of its strength heading into the close but the Nasdaq did manage to rally nearly a full percent. As a matter of fact some of the biggest losers over the past three sessions: LinkedIn, Amazon, Netflix, Facebook, and Yelp -all winners on the day. By the way, take a look at Tesla, another so-called momentum stock, it rallied almost 4 percent. David Joy of Amerprise Financial says investor sentiment can bounce back as long as the economy lives up to expectations. SOUNDBITE: DAVID JOY, CHIEF MARKET STRATEGIST, AMERPRISE FINANCIAL (ENGLISH) SAYING: "If you look at some of the data coming out of March, the second half of the month in particular suggests that we ended the first quarter on a stronger note and that gives me some optimism that once we start to see April data, May data that it's going to show the economy pushing back closer to a three percent annualized growth rate and doing so on a sustainable basis, if that happens then I think you are going to see investor confidence rise." Investors may have to overlook a ho-hum earnings season. After the close, Alcoa posted a quarterly loss, which turned into a profit when special items were factored out. Sales at $5-1/2 billion, a tad weaker than the market expected. In other corporate stories - Twitter is getting a facelift and now looks a lot like Facebook. Photos will be more prominent on users' home pages. But if you already tweet you won't notice any difference, the changes will first start with new subscribers and later roll out to existing ones. Twitter noticeably ended the day lower. The true cost of weather disruptions at the airport starting to be revealed. American Airlines had to ground more than 34,000 flights in the first quarter, resulting in about $60 million in lost profits and $115 million in lost sales. In international news, the International Monetary Fund slightly downgraded economic forecasts for this year as the world's economies continue to heal from the financial crisis. But the bank warns, while developing nations like the U.S. and Europe pull ahead emerging economies are at risk of faltering. And speaking of Europe - markets there posted modest declines.