Deal Talk Fires Up Stocks

"The market was heartened by the fact that M&A activity has given the signal that maybe the worst has passed," said Paul Nolte, director of investments with Hinsdale Associates. "The part that has been concerning is that volume has been choppy. While the market has gone up, it hasn't been with a lot of participation."

On the New York Stock Exchange, 3.19 billion shares changed hands, with advancers topping decliners by a 13-to-3 margin. Volume on the Nasdaq reached 1.81 billion shares, with winners outpacing losers nearly 2 to 1.

On Tuesday, the Dow lost 30.49 points, or 0.2%, to 13,090.86, and the S&P 500 added 1.57 points, or 0.1%, to 1447.12. The Nasdaq was up 12.71 points, or 0.5%, at 2521.30.

New York's major averages rose to session highs at midday after Senate Banking Committee Chairman Christopher Dodd (D., Conn.) said Fed Chairman Ben Bernanke will take advantage of all the tools he has to stabilize the markets. The rally lost steam after Richmond Fed President Jeffrey Lacker said the recent volatility couldn't justify a rate cut and that there is still reason to be worried about inflation.

"Obviously, there has been some deterioration in the financial markets as lending standards have gotten tougher and credit concerns have risen. However, the global economy continues to remain strong and the U.S. economy is moving forward at a moderate pace," said Robert Pavlik, chief investment officer with Oaktree Asset Management.

The subprime and credit concerns haven't disappeared though, he warned.

« Previous Page

1 2 3 4

Next Page »