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

Stock Market Today: S&P Nears Record High as Investors Await Fed Clues

Stocks in this article: ^DJI^GSPC^IXICAAPLTJXRDEN

NEW YORK (TheStreet) -- Anyone expecting the Fed to use this week's Jackson Hole symposium to signal a hawkish regime shift in the policy debate are setting themselves up for disappointment. The Fed is not likely to entertain the idea that it is falling behind the curve and keeping interest rates too low for too long.

U.S. stocks stretched out early gains to the close on Tuesday, with the S&P 500 hovering just 0.32% below its July 24 record close and gaining 2.63% in August thus far. The increases came as many economists and market participants continue to bet that the Federal Reserve will keep communicating a more dovish stance despite rising chatter on inflation and a consistently healthy economic recovery. The markets seemed to be exuding an air of certainty throughout the session, with the VIX Volatility Index down as much as 2.76% on Tuesday to 11.98, nearing its August lows. Risk-on sectors caught some of the highest bids, with technology up 0.69% and consumer discretionary up 0.76%.

Read More: 10 Stocks Carl Icahn Loves in 2014

The Dow Jones Industrial Average was up 0.48% to 16,919.59. The S&P 500 was up 0.5% to 1,981.60. The Nasdaq was up 0.43% to 4,527.51.

Watch the video below for more on today's U.S. stock market rally:

 


WATCH: More market update videos on TheStreet TV

The oft-watched inflation gauge, the Consumer Price Index, displayed on Tuesday an as-expected 0.1% rise in July, smaller than the 0.3% gain in June; the reading highlights that while inflationary pressures are in motion, broad readings aren't surging. Such reports are expected to give the Fed more room to maneuver on fed funds rate hiking. The government also reported that housing starts jumped 15.7% in July to a seasonally adjusted annual rate of 1.09 million units.

Read More: 10 Stocks George Soros Is Buying in 2014

The FOMC minutes from the Fed's July meeting on Wednesday and Fed Chair Janet Yellen's speech at Jackson Hole on Friday are expected to provide more clues into whether the central bank will expedite the policy normalization process.

Ed Yardeni, chief investment strategist at Yardeni Research, is among the market participants who are certain that Yellen will give a more dovish rather than hawkish speech in light of her previously-voiced concerns that premature monetary tightening can be disastrous. "Stock prices tend to rise after she speaks about the economy and monetary policy," Yardeni notes.

In individual stock action, TJX Companies Inc. (TJX) was up 8.65% to $58.56 on very heavy trading volume after the off-price retailer of apparel and home fashions reported better-than-projected earnings.

Apple (AAPL) hit an all-time split-adjusted high of $99.94 after the tech giant received a patent that could remove a roadblock to the company's long-rumored iWatch. Home-improvement retailer

Elizabeth Arden Inc. (RDEN) shares retreated 23.25% to $15.05 on very heavy trading volume after the beauty products company reported its biggest ever quarterly loss due to a steeper-than-expected fall in sales of celebrity perfumes, particularly the Justin Bieber and Taylor Swift brands, according to Reuters.

Read More: Aug. 19 Premarket Briefing: 10 Things You Should Know

--By Andrea Tse in New York Follow @AndreaTTse

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