This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Rise on Fed Stimulus Hopes

Stocks in this article: ^DJI ^IXIC ^GSPC MSFT JPM ORCL WAG JCP FDX

NEW YORK ( TheStreet) -- The major U.S. equity indices finished sharply higher on Tuesday as risk-tolerant investors bet that additional fiscal stimulus is forthcoming from the Federal Reserve.

For the day at least, Wall Street was looking past the eurozone's ongoing troubles as Spain continued to deal with rising borrowing costs. Reuters reported that the country had to pay "a euro era record price to sell short-term debt" on Tuesday.

The Fed is wrapping up a two-day policy meeting on Wednesday afternoon with the majority of central bank watchers expecting a move toward increased accommodation, most likely an extension of Operation Twist.

The Dow Jones Industrial Average rose more than 95 points, or 0.75%, to close at 12,837. The blue-chip index ran as high as 12,899 during the session and is now up 5.1% so far in 2012.

The S&P 500 advanced 13 points, or 0.98%, to finish at 1358, marking a fourth straight day of gains. It's now up 8% year-to-date.

The Nasdaq Composite was the biggest winner, surging more than 34 points, or 1.2%, to settle at 2930. The index has appreciated 12.5% since the start of the year.

Of the 30 Dow components, 23 were gaining ground, led by Bank of America (BAC), Microsoft (MSFT) , Caterpillar (CAT) and Alcoa (AA).

The financials, energy and basic materials sectors saw the biggest gains as all ten large-cap sectors within the S&P 500 moved higher.

Gainers were outpacing losers by a 5-to-1 ratio on the New York Stock Exchange and a 3-to-1 ratio on the Nasdaq.

Shares of Microsoft closed up nearly 3% after the software giant unveiled a new tablet product called Surface.

McDonald's (MCD) , Hewlett-Packard (HPQ), AT&T (T), and Wal-Mart Stores (WMT) were among the blue chips losing ground.

JPMorgan Chase (JPM) shares got a 2.2% boost after CEO Jamie Dimon made his second appearance on Capitol Hill in the past two weeks, appearing before a House committee to discuss the bank's controversial trading loss. One revelation was that Dimon's own pay is on the table for a claw-back with the final decision resting with JPMorgan's board.

Eurozone members of the Group of 20 major economies are declaring their commitment to "take all necessary policy measures" to ensure that the euro stays intact and to bolster confidence, according to reports of a draft communiqué from the G20 summit in Mexico.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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