The U.S. stock market rose on Tuesday as market volatility
remains high. Money moved out of bonds and into equities as the
major averages made back some of Monday's losses.
The Dow climbed around 100 points on the session while the
S&P and Nasdaq recorded gains of slightly less than 1
The market is currently looking for direction after last
week's sell-off which was sparked by expectations that the
Federal Reserve will begin tapering its bond-buying program at
the September FOMC meeting.
The Dow Jones Industrial Average rose 101 points, or 0.69
percent, to close at 14,760.
The S&P 500 added 15 points, or 0.95 percent, to finish at
The Nasdaq rose 27 points, or 0.82 percent, to 3,348.
Durable Goods Orders
Durable goods orders were up 3.6 percent for the second
consecutive month in May. This compared to consensus estimates
expecting durable goods to be up 3 percent for the month.
Excluding the transportation sector, durable goods rose 0.7
percent in May compared to an increase of 1.7 percent in April.
The consensus expected durable goods ex transportation to fall
The Conference Board's Consumer Confidence Index jumped to
81.4 in June compared to 74.3 in May. This was the highest
reading for the index since January 2008. The consensus had
expected a slight rise to 75.0.
New Home Sales
New home sales rose to 476,000 in May from 466,000 in April.
This came in ahead of consensus estimates which pegged new home
sales at 460,000 for last month.
Crude oil futures were slightly higher on Tuesday. At last
check, NYMEX crude futures had risen 0.16 percent to $95.33 while
Brent crude contracts were up 0.13 percent to $101.29. Natural
gas fell 2.25 percent on the day to $3.66.
Precious metals were mixed on either side of the unchanged
mark on Tuesday. Late in the day, COMEX gold futures were down
0.15 percent to $1,275.20. Silver contracts were last up 0.11
percent to $19.52. Copper futures rose 1.21 percent on the
session to $3.0650.
In the grains complex, both corn and wheat traded slightly
lower. Near the close of equities, corn futures had lost 0.37
percent while wheat was down 0.40 percent. Movers in soft
commodities included cotton and orange juice. Cotton futures
climbed better than 2 percent while orange juice contracts were
down 4.38 percent.
Bond prices continued to fall on Tuesday. Near the close, the
iShares Barclays 20+ Year Treasury Bond ETF (NYSE:
) was down 0.85 percent to $107.92. Yields rose on the day as
Treasury yields were as follows at last check on Tuesday. The
2-Year Note was yielding 0.39 percent. The 5-Year Note yield was
1.45 percent. The 10-Year Note and 30-Year Bond were yielding
2.54 percent and 3.56 percent, respectively.
The U.S. Dollar was up slightly 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 up 0.16 percent to $22.40.
The closely watched EUR/USD pair was last down 0.25 percent to
$1.3090. Overall, volatility was very limited in currencies, with
the only other mover over 0.20 percent being the USD/CAD, which
rose 0.21 percent.
Volatility and Volume
The CBOE Volatility Index (VIX) fell sharply on Tuesday as
market fear subsided somewhat amid a rally in U.S. stocks. Late
in the day, the VIX was down around 8 percent to 18.47.
Volume was slightly higher than usual on Tuesday, adding to a
string of high volume trading sessions. Around 151 million SPDR
S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 142
) was trading up around 11 percent near the closing bell on
reports that the company is involved with a Microsoft server farm
) had climbed around 9 percent late on Tuesday after the company,
in conjunction with Wal-Mart announced the completion of 10 new
solar installations in Maryland.
First Solar (NASDAQ:
) climbed around 8 percent amid positive sentiment in the solar
sector and an analyst upgrade.
) jumped more than 8 percent after the stock received positive
commentary at UBS. The firm reiterated its Buy rating on the name
and $19 price target.
) added around 5 percent after the company released its fiscal Q2
) lost almost 6 percent on the day after the company reported its
fiscal Q3 earnings results prior to the opening bell.
Barnes & Noble (NYSE:
) shed 17 percent after reporting a wider loss for its fiscal
American Vanguard (NYSE:
) fell more than 16 percent after the company said it expects
that its second-quarter earnings and revenue will miss analysts'
Demand Media (NYSE:
) shares lost more than 20 percent after analysts at Stifel
Nicolaus cut the stock to Hold from Buy. The firm warned that
traffic to Demand Media sites is being hurt by an algorithm
change made to Google search.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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