Stocks Extend Rally for Third Day
NEW YORK ( TheStreet) -- Stocks rallied for a third straight day Tuesday as news the Federal Reserve considered a more aggressive course of action at its last meeting countered a weak read on consumer confidence.
The Dow Jones Industrial Average finished up 21 points, or 0.2%, at 11,560. The S&P 500 rose 3 points, or 0.2%, to close at 1213, and the Nasdaq gained 14 points, or 0.6%, to settle at 2576.
Despite the gain, market watchers were skeptical the major U.S. equity indices would continue to build on the recent rally.
"For now, the market looks to battle around these levels," says Jeff Sciscillo, strategist at Campbell Wealth Management."By being oversold in the near term, the market could bounce but remain in an overall downtrend," said Sam Stovall, investment strategist with Standard & Poor's. "Investors remain worried about a potential recession in the U.S. and sovereign debt worries in Europe. However, the purchasing of Spanish and Italian debt by the European Central Bank and the International Monetary Fund has helped quell investor concerns," he added. Earlier in the session, the Dow shaved off some 40 points on news that confidence among consumers
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