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 Start Week With a Rally

Stocks in this article: FB JPM PCX SAFM AA BAC UTX


NEW YORK ( TheStreet) -- U.S. stocks advanced more than 1% Tuesday amid positive headlines out of Greece and China, even as the euro fell on worries about a deepening debt crisis across the pond.

Investors cheered new opinion polls that showed a shift in favor of austerity measures in Greece, boosting optimism that the country will remain in the euro zone. There was also some excitement about fresh stimulus measures from the Chinese government, news that led Asian stock markets higher.

Mixed economic data in the U.S. and another cut to Spain's credit rating from Egan Jones attempted to keep gains in check mid-session, but stocks still managed to close on a high note.

The Dow Jones Industrial Average gained 125 points, or 1%, to close at 12,580. The blue-chip index had run as high as 12,611.

The S&P 500 gained 15 points, or 1.1%, to finish at 1332. The Nasdaq rose 3 points, or 1.1%, to settle at 2871.

Basic materials, capital goods and technology led the way Tuesday; although every group was in green. Within the Dow, 28 of the index's 30 components finished higher, led by Bank of America (BAC), Alcoa (AA), Caterpillar (CAT), and United Technologies (UTX).

Exxon Mobil (XOM) and McDonald's (MCD) were the only stocks to finish in the red on the index.

Peter Cardillo, chief market economist at Rockwell Global Capital, attributed some of the strength to the steady selling that's dominated so far in May.

"I think we'll have an upward defensive market for most of the week," he said. "The market has reached oversold conditions and basically it's cheap in terms of valuations and present economic U.S. growth."

Tuesday's gains mark only the fifth such positive session for the Dow in the month of May. The major averages are still set to register their worst performance since September, with the Dow down about 5% in the past month. The Nasdaq and the S&P 500 have also given up between 5% and 6% each.

Cardillo also sees a good chance that Greece may ultimately remain part of the eurozone, a scenario that the market seemed to be planning against last week.

"I personally, contrary to other observers, I think that Greek elections will favor the nation staying in the Euro," he said. "The market needs to believe that."

London's FTSE settled up 0.7%, and the DAX in Germany closed up 1.2%, after political parties supporting austerity measures mandated by the European Union were shown to be receiving growing support in Greek opinion polls, with one of the pro-bailout parties coming in at the top in six polls published over the weekend.

1 of 3

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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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