A day after the Dow fell more than 200 points and the VIX
surged 35 percent, the U.S. stock market bounced back.
Better than expected new home sales along with strongly
rebounding consumer confidence helped spur risk appetite on the
day. Investors also reacted to comments from Fed Chairman Ben
Bernanke defending the central bank's bond buying stimulus
The Dow led the way on Tuesday, notching a gain of better than
The Dow Jones Industrial Average rose 117 points, or 0.85
percent, to 13,901.
The S&P 500 was up 9 points, or 0.61 percent, to
The Nasdaq was the laggard on the session, but still added 13
points, or 0.43 percent, to 3,130.
New Home Sales
New home sales were strongly higher in January, rising 15.6
percent from 378,000 in December to 437,000 in the most recent
month. This came in way above consensus expectations of 383,000
and helped spark a stock market rally on Tuesday.
The market was also buoyed by a better than expected consumer
confidence reading on Tuesday. The Conference Board's Consumer
Confidence Index jumped to 69.0 in February compared to 58.6
reading in January. This easily beat consensus estimates calling
for an increase to 62.0.
Crude oil prices fell on Tuesday despite a rally in the equity
market. Near the end of the day, NYMEX crude futures, the U.S.
benchmark, were down around 0.67 percent to $92.50. Brent crude
futures had lost 1.57 percent to $112.64. Natural gas bucked the
trend lower in energy markets and was last trading up 0.38
percent to $3.43.
Precious metals rallied for a second straight day on Tuesday.
Near the close of the equity market, COMEX gold futures had
gained 1.71 percent to $1,615.50. Silver futures had added a
little better than 1 percent to $29.32.
In the agricultural complex, both corn and wheat climbed on
the day. At last check, corn was up 1.35 percent while wheat had
gained a little less than 1 percent. In soft commodities, cocoa
lost around 1 percent while orange juice concentrate futures were
down around 2 percent.
Near Tuesday's close, the iHSares Barclays 20+ Year Treasury
Bond ETF (NYSE:
) was down around 0.54 percent to $118.70. Lower Treasury prices
caused yields to rise on the day.
At the front end of the curve, yields were unchanged with the
2-Year Note and 5-Year Note holding steady at 0.24 percent and
0.76 percent, respectively. Both the 10-Year Note and 30-Year
Bond yields rose two basis points to 1.88 percent and 3.08
The U.S. dollar was slightly higher on Tuesday. Late in the
day, the PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was up 0.09 percent to $22.34.
While the closely watched EUR/USD pair fell another 0.84
percent to $1.3068, the Japanese yen appreciated sharply against
the greenback with the USD/JPY falling 1.37 percent. Both the
pound and Australian dollar lost around 0.50 percent against the
Volatility and Volume
The VIX gave back some of Monday's big gains as the stock
market rallied back on Tuesday. The widely watched volatility
index ended down more than 11 percent at 16.82.
Volume was heavier than usual on Tuesday as investors looked
for bargains after Monday's stock market drubbing. Around 170
million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of
CommonWealth REIT (NYSE:
) soared around 54 percent on Tuesday after Corvex Management and
Related Fund Management disclosed a near 10 percent stake in the
REIT and said they were prepared to acquire the office building
operator. They also pushed for management to cancel a planned
Home Depot (NYSE:
) shares climbed more than 5 percent after the home improvement
chain released its quarterly earnings results.
Cracker Barrel (NASDAQ:
) jumped almost 9 percent after its fiscal Q2 results.
Vitamin Shoppe (NYSE:
) plunged almost 19 percent after the company reported
disappointing fiscal fourth-quarter results.
U.S. Silica Holdings (NYSE:
) surged almost 18 percent on Tuesday after the company posted
upbeat Q4 results and guidance.
Titan International (NYSE:
) plunged more than 15 percent on the session after a
disappointing second-quarter earnings report.
Spreadtrum Communications (NASDAQ:
) fell almost 4 percent after the company reported its Q4
earnings results and provided guidance for the first-quarter.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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