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
TheStreet Open House

Fed Talks, Solar Stocks Inspire Market Gains

NEW YORK ( TheStreet) -- U.S. markets rose against the odds Tuesday, though continuing tensions in Iraq and cautiousness as the Federal Reserve began its two-day policy meeting capped any big gains.

Relief in oil prices eased concerns over the turmoil in Iraq, removing some downward pressure caused by geopolitical uncertainty. The Dow Jones Industrial Average was up 0.16% to 16,808.49, the S&P 500 added 0.22% to 1941.99, and the Nasdaq rose 0.37% to 4,337.23. Crude oil futures for July were down 68 cents to $106.22 a barrel after a 4% increase last week.

President Obama on Monday informed Congress that he would be sending as many as 275 military personnel to Iraq to provide support and security for U.S. personnel and the U.S. Embassy in Baghdad. Obama will meet with House and Senate leaders on Wednesday to discuss further U.S. intervention, Senator McConnell said Tuesday.

European markets staged a mild rebound Tuesday, partly in response to a slight reduction in oil prices and a hope that, for now, the renewed conflict in Iraq has been priced in.

Confidence in the U.S. housing market recovery experienced a setback Tuesday following a greater-than-expected decline in May housing starts and building permits. Housing starts fell 6.5% to a seasonally adjusted annual pace of just more than 1 million units in May. There was also a downward revision to an increase of 12.7% in housing starts in March. Building permits fell 6.4% to an annual pace of 991,000 last month.

The Consumer Price Index increased at its fastest pace in more than a year for May, up 0.4% from the prior month.

The mixed economic results could impact discussions on short-term interest rates as Federal Reserve officials begin their meeting Tuesday. Investors largely expect the meeting to result in another $10 billion reduction in its monthly bond purchases.

In corporate news, SolarCity (SCTY) spiked 17.6% to $64.53 after agreeing to acquire solar tech company Silevo. Though terms of the deal were not disclosed, Chairman Elon Musk said the company intends to build the single largest solar panel production plants in the world in New York State.

Solar stocks received a big boost from the news: SunPower  (SPWR) added 4.3%, Sunedison  (SUNE) gained 3% and Real Goods Solar  (RGSE) surged 16.5%.

Yingli Green Energy (YGE) added 12.2% to $3.95 after reporting a quarterly loss nearly half losses a year earlier. Gross margins also increased to 15.7% from 4.1% as the company gained a better grip on costs.

General Motors (GM) gained 0.83% despite announcing another wave of recalls. The latest, a total 3 million defective vehicles, brings its total since the beginning of the year to over 20 million.

Tesla (TSLA) was a heavy-volume gainer on Tuesday, up 3.1% to $231.67. A bill that would allow electric car maker Tesla Motors to open four showrooms in New Jersey and sell directly to consumers in the state got Assembly approval Monday, according to reports.

Adobe Systems (ADBE) is a stock to watch after the bell. The software maker, is forecast by Wall Street to report on Tuesday fiscal second-quarter profit of 30 cents a share on revenue of $1.03 billion.

U.S. stocks on Monday finished higher, though gains were constricted by escalating violence in Iraq.

--By Keris Alison Lahiff and Andrea Tse in New York

June 17 Premarket Briefing: 10 Things You Should Know

European Stocks Stage a Mild Rebound

U.S. Markets Pull Ahead Though Geopolitical Threats Confine Gains

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • 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