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

Stocks Rebound Sharply as Fisher and Plosser Support Fed Tapering

NEW YORK (The Street) -- Major U.S. stock markets bounced back Tuesday, with the S&P 500 garnering its strongest session of the year, as Fed voting members Richard Fisher and Charles Plosser bolstered confidence in the economic recovery by emphasizing their support for central bank tapering.

The rebound began in earnest Tuesday, after yesterday's deep selloff, on higher-than-forecast December consumer spending numbers.

  • The S&P 500 gained 1.08% to 1,838.88, the Dow Jones Industrial Average added 0.71% to 16,373.86, the Nasdaq advanced 1.69% to 4,183.02.
  • December retail sales rose by a better-than-expected 0.7% excluding autos and 0.2% overall, the Census Bureau said. The government's U.S. import price index was unchanged in December. Business inventories rose 0.4% in November.
  • The retail sales report "continues to support signs that the economy has certainly improved and despite a messy employment report, is being driven by the consumer," Andrew Wilkinson, chief market analyst at Interactive Brokers said in a morning note.
  • The National Federation of Independent Business' small business optimism index jumped 1.4% in December on improved sales expectations.
  • Fourth-quarter earnings for the S&P 500 are, on average, expected to increase 5.32% year over year with an EPS of $27.76, according to S&P Capital IQ. S&P Capital IQ said analysts anticipate that nine sectors will post earnings growth in the fourth quarter, with telecom (78.3%) and financials (13.04%) leading the growth. Sectors expected to be the biggest laggards this quarter are energy (-8.3%) and utilities (-5.6%).
  • Dallas Federal Reserve President Richard Fisher said Tuesday that he will support tapering as long as the jobless rate continues to fall and the economy keeps growing. Concerned about inflation, he would have actually preferred a $20 billion taper. He's not seeing a bubble forming in stocks and bonds.
  • Philadelphia Fed President Charles Plosser said earlier that he'd like to see the Fed conclude its quantitative easing program before year-end. The soft, December job data has "not changed my belief that the economy has already met the criteria of substantial improvement in labor market conditions," he said.
  • Allied World Assurance (AWH - Get Report) tacked on 1.15% to $108.64 after being initiated at BMO Capital with an outperform rating.
  • Danaher (DHR - Get Report) was gaining 2.77% to $78.26 after being upgraded at Bank of America to "buy" from "neutral."
  • Intel (INTC - Get Report) was jumping nearly 4% to $26.51 after being upgraded at J.P. Morgan to "overweight" from "neutral."

-- Written by Andrea Tse in New York.

Follow @atwtse

>Contact by Email.

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
AWH $42.90 0.00%
DHR $86.61 0.00%
INTC $33.45 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%

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