This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Stocks Soar as Global Worries Subside

Stocks in this article: GS JNJ KO IBM INTC YHOO

NEW YORK ( TheStreet) -- Stocks enjoyed a broad rally on Tuesday as a strong global growth forecast from the International Monetary Fund, a pair of successful Spanish bond auctions and strong corporate results boosted investor sentiment.

The Dow Jones Industrial Average gained 194 points, or 1.5%, to finish at 13,115, just below a session-high of 13,131. All 30 components of the blue-chip index finished in the green, with Walt Disney (DIS), Kraft (KFT) and General Electric (GE) posting the biggest percentage gains.

The S&P 500 rose 21 points, or 1.5% to close at 1391, making a solid break above its closely watched 50-day moving average of 1370.

The Nasdaq was the biggest winner, jumping 54 points, or nearly 2%, to settle at 3043 as investors anticipated earnings from tech heavyweights including IBM (IBM - Get Report), Intel (INTC - Get Report), Yahoo! (YHOO - Get Report) after the closing bell.

Apple (AAPL) broke its five-day losing streak, rising 5.1% to $609.70 on volume of 36.3 million, well ahead of the trailing three-month daily average churn of 21.9 million.

The initial reaction to the late round of earnings from tech was mixed though. Shares of Yahoo! were rising 2% in after-market trading hours after gaining 1.45% during the session, after the company said profits rose 38% to 23 cents per share, beating estimates for 17 cents.

Investors will likely pay more attention to any update CEO Scott Thompson provides on the conference call about recent restructuring efforts. Thompson unveiled plans earlier this month to lay off 2,000 employees, or 14% of the work force, and realigned Yahoo! into three divisions.

Shares of IBM were losing 2% in after-market trading, even though it beat estimates on the bottom line and raised its guidance to 15 cents per share, above consensus.

Investors were not impressed with Intel's results either, although the chipmaker also beat estimates with an earnings per share of 56 cents on revenues of $12.9 billion.

Earlier on Tuesday, the International Monetary Fund hiked its global growth forecast to 3.5% from 3.3% for 2012 and boosted its U.S. growth outlook to 2.1% from 1.8%. The IMF said that "some optimism has returned" to the world economy but also cautioned that the optimism should be "tempered." The IMF said that growth in the United Kingdom should speed up as well, by 0.8% rather than the previously forecast 0.6%.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs