Stocks climbed slightly higher on Tuesday, the sixth daily gain in a row for the Dow, as Wall Street cheered the latest signs of an economic recovery and the reappointment of Ben Bernanke, the man some say prevented the recession from turning into a full-fledged depression. A rebound in consumer confidence and more healing in the housing industry put stocks back on an upward path.Banks, retailers and homebuilders were Tuesday's biggest winners, helping to lift the major indexes about 0.3 percent. Energy and utility stocks fell sharply as oil prices cooled following a recent surge.
Though investors were pleased by better-than-expected readings on consumers and housing, trading was choppy as it has been over the past week. Despite improving economic data, the market is still generally cautious.
Today's Markets
The Dow Jones Industrial Average rose 30.01 points, or 0.32%, to 9539.29, the Standard & Poor's 500 added 2.43 points, or 0.24%, to 1028 and the Nasdaq Composite picked up 6.25 points, or 0.31%, to 2024.23.
It's appropriate the Bernanke announcement coincided with the release of a pair of reports that reveal how much economic conditions have improved since the darkest days of the financial crisis the Fed chairman is credited with containing. A private research group said consumer confidence unexpectedly surged in August and a home price index revealed prices rose on a monthly basis for the second-straight month, something that hasn't happened in two years.
The latest rally sent the Dow to its sixth consecutive daily gain and pushed all three major indexes to fresh 2009 highs.
Though investors were pleased by better-than-expected readings on consumers and housing, trading was choppy as it has been over the past week. Despite improving economic data, the market is still generally cautious.
Today's Markets
The Dow Jones Industrial Average rose 30.01 points, or 0.32%, to 9539.29, the Standard & Poor's 500 added 2.43 points, or 0.24%, to 1028 and the Nasdaq Composite picked up 6.25 points, or 0.31%, to 2024.23.
It's appropriate the Bernanke announcement coincided with the release of a pair of reports that reveal how much economic conditions have improved since the darkest days of the financial crisis the Fed chairman is credited with containing. A private research group said consumer confidence unexpectedly surged in August and a home price index revealed prices rose on a monthly basis for the second-straight month, something that hasn't happened in two years.
The latest rally sent the Dow to its sixth consecutive daily gain and pushed all three major indexes to fresh 2009 highs.
"The market has legs. It looks like it wants to roast up to [Dow] 10000 regardless of what anyone says,” said Frank Davis, director of sales and trading at LEK Securities.
The Dow has surged more than 17% over the past six weeks as Wall Street continues to price in the chances of a second-half economic recovery. In fact, the benchmark index nearly closed on Tuesday 3,000 points above its 12 1/2-year low of 6457, set on March 9. The most striking thing about the rally is that it has yet to be slowed by a correction of 10% or more, much to the bears' dismay.
However, the markets ended well off their best levels as a 3% plunge in the price of crude oil put pressure on the energy sector, capping the day's gains.
So can the summer surge continue into the fall despite more expected job losses?
“I think it can,” said Richard Sparks, senior equity analyst at Schaeffer’s Investment Research, pointing to the amount of cash believed to be on the sidelines. “We’re up big, no doubt about it. But there’s still skepticism. That suggests you don’t have the euphoria you’d have after such a big run if it’s near an end.”
Oil tumbles from 10-month peak on profit-taking.jpg)
Oil prices fell 3 percent on Tuesday as dealers rushed to take profits from a rally that had culminated in a 10-month peak earlier in the day.
U.S. crude oil dropped $2.32 to settle at $72.05 a barrel, down from a high of $75, in the biggest percentage loss since August 14. Brent crude dropped $2.44 to $71.82.
"It looks like crude tested the $75 level and failed," said Tom Bentz, a trader with BNP Paribas.
Players said oil's more than 65 percent rally this year was a good opportunity for some to lock in profits. "There's been profit-taking in the energy markets," said Tim Evans, analyst at Citi Futures Perspective in New York.
Oil prices had shot up in earlier trading after U.S. reports showed increased consumer confidence and higher home prices in the world's largest energy consumer -- adding to a string of encouraging economic indicator
Oil prices, which usually track equities markets closely, could hold around current levels next year, according to a Reuters survey of more than 30 analysts.
The analysts raised their consensus forecast for the fifth straight month on expectations higher fuel demand in an economic recovery would support prices.
The oil market's focus will shift later to weekly U.S. oil inventory data.
The Dow has surged more than 17% over the past six weeks as Wall Street continues to price in the chances of a second-half economic recovery. In fact, the benchmark index nearly closed on Tuesday 3,000 points above its 12 1/2-year low of 6457, set on March 9. The most striking thing about the rally is that it has yet to be slowed by a correction of 10% or more, much to the bears' dismay.
However, the markets ended well off their best levels as a 3% plunge in the price of crude oil put pressure on the energy sector, capping the day's gains.
So can the summer surge continue into the fall despite more expected job losses?
“I think it can,” said Richard Sparks, senior equity analyst at Schaeffer’s Investment Research, pointing to the amount of cash believed to be on the sidelines. “We’re up big, no doubt about it. But there’s still skepticism. That suggests you don’t have the euphoria you’d have after such a big run if it’s near an end.”
Oil tumbles from 10-month peak on profit-taking
.jpg)
Oil prices fell 3 percent on Tuesday as dealers rushed to take profits from a rally that had culminated in a 10-month peak earlier in the day.
U.S. crude oil dropped $2.32 to settle at $72.05 a barrel, down from a high of $75, in the biggest percentage loss since August 14. Brent crude dropped $2.44 to $71.82.
"It looks like crude tested the $75 level and failed," said Tom Bentz, a trader with BNP Paribas.
Players said oil's more than 65 percent rally this year was a good opportunity for some to lock in profits. "There's been profit-taking in the energy markets," said Tim Evans, analyst at Citi Futures Perspective in New York.
Oil prices had shot up in earlier trading after U.S. reports showed increased consumer confidence and higher home prices in the world's largest energy consumer -- adding to a string of encouraging economic indicator
Oil prices, which usually track equities markets closely, could hold around current levels next year, according to a Reuters survey of more than 30 analysts.
The analysts raised their consensus forecast for the fifth straight month on expectations higher fuel demand in an economic recovery would support prices.
The oil market's focus will shift later to weekly U.S. oil inventory data.
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