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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stocks Soar More Than 2%, Finish at Session Highs


NEW YORK ( TheStreet) -- The major U.S. equity indices finished Wednesday's powerful 2%-plus rally on a high note as investors flooded into stocks on the hope that the Federal Reserve could soon signal its openness to another round of quantitative easing.

The major U.S. equity indices were also getting a lift from some short-covering following the deep declines seen since the start of May and a better than expected GDP report from Australia, according to Robert Pavlik, chief market strategist at Banyan Partners.

The Dow Jones Industrial Average gained 287 points, or 2.4%, to close at 12,415. The move puts the blue-chip index back in the black for the year (up 1.6%) after it went negative during last Friday's steep selloff following the weak May jobs report.

The S&P 500 jumped nearly 30 points, oe 2.3%, to settle at 1315. The Nasdaq rose 67 points, or 2.4%, to close at 2845.

All three indexes finished at their session highs. The S&P 500 is now up 4.6% in 2012, and the Nasdaq has gained 9.2%.

Fed Chairman Ben Bernanke is slated to appear on Capitol Hill Thursday, and Wall Street is betting that he hints that the central bank is amenable to providing additional monetary stimulus with Operation Twist slated to end later this month.

Announced in September 2011, Operation Twist involves selling short-term bonds and buying long-term ones. The current $400 billion program expires this month but Federal Reserve Bank of Atlanta President Dennis Lockhart said Wednesday an extension was an option.

Pavlik said there could be more upside ahead in the short term but also noted that headline risk from Europe remains a constant worry, saying he would be "extremely cautious heading into next week" with the Greek elections looming toward the end of the month.

"While the recent talk from financial leaders has been in-line with what the Street wants to hear as it relates to 'what they'll to do' to safeguard the banks and financial systems in Europe; keep in mind that nothing other than an agreement to keep talking and to try and formulate a plan has actually been decided upon," he wrote in emailed commentary on Wednesday. "What this means is, we still have no concrete understanding what the finance ministers will do or if they'll be ready if the debt crisis worsens."

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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!
SYM TRADE IT LAST %CHG
LNKD $264.63 -1.38%
TPX $55.73 -1.97%
AAPL $126.60 0.15%
FB $80.00 -1.48%
GOOG $567.68 -1.33%

Markets

DOW 17,856.78 -278.94 -1.54%
S&P 500 2,071.26 -29.78 -1.42%
NASDAQ 4,927.37 -55.4390 -1.11%

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