Data, Calendar Boost Stocks

Those who are winning in the stock market thus far this year are dodging and weaving to ensure that by year-end, they haven't lost. Those who are losing are chasing the stocks that might give them the most returns ... and quick. Out of 18,000 mutual funds, 71% are underperforming compared to their relative benchmarks, according to data compiled by Morningstar Ratings.

The result is a stock market that goes up on the slightest whiff of good news, and a market that has both defensive and aggressive sectors outperforming. This kind of year-end maneuvering is one way to explain the consummately defensive Dow Jones Utilities Index hitting an all-time-high along with the riskier Russell 2000 and S&P 400 MidCap Index.

The three indices marked new historic highs again Tuesday as the Dow Jones Industrial Average rose 0.4% to 12,331.60, about 11 points below its all-time closing high. The S&P 500 jumped 0.4% to close at 1414.76, its highest level since November 2000. The Nasdaq Composite closed up 0.2% to end the day at 2452.38. The Dow is up 15% year to date, while the S&P has returned 13.3% and the Nasdaq 11.2%.

"Everyone is underperforming" relative to their benchmark indices, says Liz Ann Sonders, chief investment strategist at Charles Schwab. "So, you only have a few weeks as a window to cover some ground."

Boosting stocks Tuesday was a dose of economic data that splashed water on both recession fears and inflation concerns that enflamed last week.