This Day On The Street
Continue to site
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

Markets Climb, Led By Small-company Stocks

It got support early after hedge fund manager David Tepper said that he is still bullish on stocks. Speaking on CNBC before the market opened, Tepper said that investors shouldn't worry about the Fed tapering its stimulus program. The money manager has about $18 billion dollars under management, according to the broadcaster.

The Dow Jones industrial average rose 123.57 points, or 0.8 percent, to 15,215.25. The S&P 500 index rose 16.57 points, or 1 percent, to 1,650.34. Both closed at all-time highs after stalling on Monday.

The Dow has gained for 18 straight Tuesdays. The only day with a longer streak of consecutive gains is Wednesday, with 24 back in 1968, according to Schaeffer's Investment Research.

May has been a strong month for the market. The S&P has risen eight of the past nine days, the Russell and Dow transportation average have risen seven.

The prospect of continued stimulus from the Federal Reserve has also supported the market's run-up.

For stock investors, the U.S. economy is "not too hot, not too cold," said Michael Sheldon, chief market strategist at RDM Financial. It's weak enough that the Fed will continue its $85 billion-a-month economic stimulus program, but strong enough for companies to generate healthy earnings.

"There is a lot of momentum in the market right now," Sheldon said. "It's largely being fueled by the Federal Reserve and modest growth in the U.S."

The U.S. economy grew at an annual rate of 2.5 percent in the first quarter. While hiring has picked up, the unemployment rate is still at 7.5 percent, above the 6.5 percent rate that the Fed is targeting. As a result, the central bank is expected to keep buying bonds to hold down long-term interest rates and encourage more borrowing and spending.

Earnings of companies in the S&P 500 index, meanwhile, increased about 5 percent in the first quarter, and are expected to grow even faster in the second half of the year, according to S&P Capital IQ.

2 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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs