This Day On The Street
Continue to site
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

The Final Hour: No News is Good News for Stocks

NEW YORK (TheStreet) -- No news is good news -- and an absence of bad news was all that was needed to push the S&P 500 and Dow Jones to fresh highs on Monday, underpinned by a rebound in tech stocks and small caps.

Driving the optimism was a mostly peaceful weekend vote in Ukraine that saw a win handed to pro-Russian separatists, but had few immediate consequences. Meanwhile China, the world's second-largest economy, announced capital market reforms that bolstered sentiment on the Shanghai and Hong Kong bourses.

Closer to home there was scant economic data, giving bears little reason to fret over what continues to be a mixed recovery. Earnings season is also drawing to a close and has been largely in line with low expectations (if you can't meet decent hurdles, just lower them) while M&A continues: Pinnacle Foods (PF - Get Report) surged nearly 14% after Hillshire Brands (HSH) agreed to buy it for about $6.6 billion on Monday.

Long story short: with few other places to put their money amid a rising rate backdrop and absence of obvious risk, investors will push equities higher. Yes, valuations may be stretched and Europe appears to represent better value -- but since when have Americans been enthusiastic offshore investors?

Must Read: Market Hustle: Stocks Trade at All-Time Highs as Tech Shares Rebound

Small caps and tech stocks were the stars of Monday's show. The Nasdaq was jumping more than 1.60% in late afternoon trade while small caps as represented by the Russell 2000 had their biggest one-day gain in more than a month, rising more than 2%. Small caps are seen as a crucial gauge of investor risk appetite, with the sector typically outperforming amid a bull market. But traders warn not to read too much into strong one-day moves in tech -- reminding pundits that the near 6% jump in stock such as Twitter (TWTR - Get Report) and the 4%+ gain in Netflix (NFLX) were likely a resurgent flicker of momentum trading -- one that could easily die with the next spark of investor defensiveness.

-- By Jane Searle in New York

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HSH $62.96 0.00%
PF $42.64 0.00%
TWTR $14.40 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs