The stock market rebounded strongly on Tuesday after recording
steep losses to begin the week on Monday.
A surging euro and better than expected housing data helped
spur investor confidence. Gold and silver prices also stabilized
on the day after recording tremendous losses over the course of
the last two trading sessions.
The Dow Jones Industrial Average climbed almost 158 points, or
1.08 percent, to close at 14,757.
The S&P 500 rose better than 22 points, or 1.43 percent,
to finish at just below 1,575.
The Nasdaq Composite added 48 points, or 1.50 percent, to
3,265 on Tuesday.
Consumer prices fell 0.2 percent for March after registering
an increase of 0.7 percent in February. This compared to
consensus estimates which called for a decrease in CPI of 0.1
On a core basis, which excludes volatile food and energy
costs, consumer prices rose 0.1 percent in March versus a gain of
0.2 percent in February. This was below the consensus which
expected prices to rise 0.2 percent in the most recent month.
The CPI reading is another sign that the economy is still
susceptible to deflationary pressures. These concerns are one of
the reasons for the recent sell-off in commodities.
Housing starts were up 7.0 percent to 1.036 million in March
from 968,000 in February. This compared to consensus estimates of
Building permits for the month of March fell 3.9 percent to
902,000 from a downwardly revised 939,000 in February. This
compared to consensus estimates of 945,000 building permit
Commodity prices stabilized on Tuesday after a huge sell-off
to start the week. Near the close of equities, NYMEX crude
futures were unchanged at $88.71. Brent crude futures were last
down 0.80 percent to $99.82. Natural gas climbed 0.73 percent to
Precious metals were mixed on the session after plummeting on
Tuesday. COMEX gold futures were last trading up 0.46 percent to
$1,368.20. Silver futures were down 0.18 percent to $23.35 at
last check. Near the close, copper futures had added 0.95
The grain complex moved higher on Tuesday. At last check, corn
was up around 2 percent while wheat had climbed a little better
than 1 percent. In soft commodities, movers included cocoa, which
added around 2 percent and sugar which was up a little less than
Bonds fell as stocks surged on the day. Near the close of
equity trading, the iShares Barclays 20+ Year Treasury Bond ETF
) had lost 0.80 percent to $122.00. Yields rose as bond prices
fell on the session.
The yield on the 2-Year Note rose one basis point to 0.23
percent. The 5-Year Note yield added two basis points on the
session to 0.70 percent.
Yields on the 10-Year Note and 30-Year Bond both rose four
basis points to 1.72 percent and 2.90 percent, respectively.
The U.S. dollar fell sharply on Tuesday. Near the close, the
PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was down 0.80 percent to $22.23.
The closely watched EUR/USD pair surged more than 1 percent on
the day to $1.3191. Other movers included the GBP/USD, which
added 0.59 percent, and the AUD/USD which was last up 0.57
Volatility and Volume
After surging more than 40 percent on Monday amid a sell-off
across asset classes, the VIX plunged more than 19 percent on
Tuesday to 13.95.
Volume for the SPDR S&P 500 ETF (NYSE:
) was right around the 3-month average on Tuesday with roughly
125 million shares trading hands. Volume spiked on Monday as
markets plummeted, which pushed up the 3-month average volume for
SPY to around 126 million shares.
Acorda Therapeutics (NASDAQ:
) was a big gainer for the second straight day. The stock was
trading up better than 12 percent near the close. The company
announced positive Phase II data for its AMPYRA drug on
Shares of W.W. Grainger (NYSE:
) jumped better than 7 percent after the company reported better
than expected fiscal first-quarter financial results.
Halcon Resources (NYSE:
) bounced back after big losses on Monday. The stock was last
trading up better than 9 percent.
Sarepta Therapeutics (NASDAQ:
) fell more than 13 percent after analysts at Leerink Swann
downgraded the shares from Outperform to Market Perform.
) fell nearly 8 percent on Tuesday after the company lowered its
fiscal first-quarter guidance.
Barrick Gold (NYSE:
), which has been in a significant downtrend, lost another 5
percent on the session despite gold futures stabilizing on the
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