Dow up 158 as stocks stage a 'never-mind' rally
Decent news on inflation and housing gives stocks a chance to recover from Monday's drubbing. Gold recoups of its losses. Intel earnings meets estimates.
Stocks rebounded Tuesday after Monday's big sell-off -- in what looked like a "never mind" rally. The major indexes recovered about 60% of their losses from Monday. Even better, the major indexes survived several waves of selling and ended the day very close to their highs of the day.
The Dow Jones Industrial Average ($INDU) closed up 158 points to 14,757. The The Standard & Poor's 500 Index ($INX) jumped 22 points to 1,575. The Nasdaq Composite Index ($COMPX) added 48 points to 3,265.
The market's bounce was considerable. The Dow's gain was its third-largest gain of the year; the S&P 500 and Nasdaq had their second-biggest gains. And it was welcome after worries about China, the gold slump and the terror attack that killed three at the Boston Marathon drove the Dow down 266 points on Monday.
What does it mean? The rally and the decent earnings so far, according to Patricia Edwards, chief investment officer at Trutina Financial Group in Bellevue, Wash., suggest "this is a market that's not to be trifled with."
Why? Earnings so far are looking reasonably strong, especially those of Coca-Cola (KO) and Johnson & Johnson (JNJ). Financial earnings, which dominate the early part of any earnings season have been decent.
After the close, Intel (INTC) earnings met Street estimates, despite reports of slumping personal-computer sales. Shares rose slightly after hours after finishing up 55 cents to $21.93. Yahoo (YHOO) shares were down 4% to $22.85 after reporting flat revenue and a second quarter in a row of declining display-ad sales.
An exception may be Goldman Sachs (GS), whose shares were down $2.71 to $143.75. Earnings beat estimates, but revenue from its giant bond trading business was lower than expected. Equity trading revenue was down as well.
The economic data doesn't show an economy on the verge of a nasty slowdown. And one should note that the full effects of federal spending cuts on the economy yet visible.
Tuesday's data was bullish. Housing starts in March topped a seasonally adjusted 1 million units for the first time since June 2008, propelled by gains in apartment construction. Building permits slipped from February but were still up 17.3% from a year ago.
Consumer prices were lower in March, thanks largely to falling gasoline prices. The national average price of regular unleaded gasoline fell 3.9% to $3.636 a gallon during the month, according to AAA's Daily Fuel Gauge Report. Prices are off an additional 3.3% this month to $3.522, as of Tuesday.
Gold (-GC) rebounded on Tuesday, settling at $1,387.40 an ounce, up $26.30. Copper (-HG), silver (-SI) and platinum (-PL) also rallied.
Light sweet crude oil (-CL) was up 1 cent to $88.72. Brent crude was off 49 cents to $99.91 a barrel. Brent hadn't closed below $100 since July 4, 2012. Brent, which is traded in London, is important because it heavily influences U.S. gasoline prices.
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Oh well...heck...all must right then with Wall St....sheesh!
I'm surprised they had the comments section up today since they tossed it out weeks back because all the hedge fund slimeballs were upset at the negativity of their 'art'.
If there's no substantive and enthusiastic consensus behind these swings, they are mostly meaningless.
Checkur6....You might want to CHECK some facts or verify your comments before posting bullshidt here....Possibily going to Kitco dot com...? Could help...?
From Apr 11th. to the 15th....Gold dropped about $200 per troy oz. From apx 1550 to 1350..
The Closing today was back up to $1375 apx...From the overnights around the World..
Hardly a $400 drop YESTERDAY...!!
This market is looking for reasons to go down. It is not supported by fundamentals of the economy. It is a sucker momentum market, with everyone afraid to NOT BE IN. Those are dangerous markets. Once people decide the momentum is over, people bail out. this is what happens and this is what people see and then say the big banks did this and that and screwed the little guy. But the reality is that anyone can see this stuff and if they watch they to can ride the momentum and then get out. No big guy this or little guy that. If you can not play the game then don't play it. But don't be surprised when the music stops and the smart (and or big money) money gets out. It is up to you.
And to a degree this is EXACTLY what is happening to gold. People don't see any reason to be in gold and many many rode the speculative wave watching the snake oil salesme sell the stuff to the scared. Yes, big money sees fearful people and are smart enough to profit. And yes some small investors, ie me, see the same thing. Is that my fault, or the fault of fearful people and excuse me but greedy little people trying to profit in a tough game. (Not really greedy, but I use the term because if a big fish trys to profit they are labeled greedy, if the little guy does the same he is just fine. If the little guy loses out, they blame the big guy. So tiring.
A "never mind rally? Well then, on the advice of MSN, and the financial advice industry that depends on commissions and churning all our money - I'M ALL IN!
And let's not forget Uncle Joe's SUMMER OF RECOVERY! Version 4.0!
Are you with me?
"It seems the market is driven up and down by those investors suffering from paranoia"
hardly...nothing more than a profit opportunity for the 'big houses' triggered by media activity.
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