On Tuesday, markets fluctuated before moving higher as Fed Chairman Jerome Powell testified before Congress. Powell told lawmakers that the tax reform bill signed into law last year will provide "meaningful support (for the GDP) for the next two to three years." Powell advocated for open trade agreements, asserting that countries that are open to trade tend to do better historically.
Jim Cramer: A Pretty Wild Rally In Three Oppositional Groups
"You combine a Fed Chairman who doesn't want to throw us into a recession, which has suddenly become a big worry, with the absence of negative trade news and you get a pretty wild rally in not two but three oppositional groups, something that's not supposed to be happening and historically almost never does, "says TheStreet's Jim Cramer.
"How can this be? Let's take a look at the camps so we can figure it out," Cramer adds.
How to Play Goldman Sachs After Its Big Earnings Beat
Real Money columnist James DePorre notes: "Positive responses to bank earnings on Monday helped to offset broad weakness. Tuesday morning Goldman Sachs (GS - Get Report) reported its results and the big question is whether it can keep the momentum going in the financial sector. Banks and financials have been the laggard group for a while, but bargain hunters have discovered them and are accumulating as valuations look reasonable compared to other areas of the market."