The U.S. stock market had another strong session on Tuesday. A
report showing that home prices jumped the most in seven years in
March and a steep climb in consumer confidence for May triggered
more optimism on Wall Street.
Although stocks finished off of their best levels of the day,
the Dow still managed another triple-digit gain as the major
averages continue their bull run in 2013.
Although investors should be on watch for a potential
correction in the wake of the emerging exuberance, the trajectory
for this market continues to look up.
The Dow Jones Industrial Average rose 106 points, or 0.69
percent, to 15,409.
The S&P 500 climbed 10 points, or 0.63 percent, to close
The Nasdaq rose almost 30 points, or 0.86 percent, to
The Conference Board's Consumer Confidence Index showed a
sharp rise in May, helping to trigger investor risk appetite on
Tuesday. The index rose from 68.1 in April to 76.2 in May. This
compared to consensus estimates calling for a rise to 72.5. The
latest reading was the highest since February 2008.
Energy prices headed higher along with other risk assets on
Tuesday. NYMEX crude futures added a little better than 1 percent
to $95.15 late in the day. Brent contracts were up 1.63 percent
to $104.29 at last check. Natural gas prices fell a little less
than 2 percent to $4.16 to start the trading week.
Precious metals as the stock market rallied again. COMEX gold
futures fell 0.43 percent to $1,380.60 while silver was last
trading down a little better than 1 percent to $22.23. Copper
futures added 0.58 percent on Tuesday.
In the grain complex, corn futures jumped almost 3 percent on
the session. Wheat traded down a little more than 0.50 percent.
Movers in soft commodities included a loss of 1.83 percent in
cocoa and 3.36 percent in lumber prices.
Bond prices plunged on Tuesday as investors reacted to signs
of an improving economy. Near the close of equities, the iShares
Barclays 20+ Year Treasury Bond ETF (NYSE:
) was down 2.29 percent to $114.10. The fall in prices drove
yields markedly higher.
The yield on the 2-Year Note rose three basis points to 0.28
percent. The 5-Year Note yield added eleven basis points to 1.00
percent while the 10-Year yield surged fourteen basis points to
2.15 percent. The 30-Year Bond yield jumped twelve basis points
to 3.29 percent.
Strong economic data pushed the U.S. dollar up on the session.
The PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was last up 0.62 percent to $22.85.
The closely watched EUR/USD pair was last trading down 0.46
percent to $1.2875. The dollar also rose against the yen, with
the USD/JPY last trading up around 1 percent. The USD/CAD climbed
0.50 percent on the session.
Volatility and Volume
The VIX climbed a little better than 2 percent on Tuesday
despite a rally in the stock market to start the week. Late in
the session the widely watched barometer of market fear was
trading at 14.32.
Volume was slightly lighter than normal on Tuesday. Around 125
million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 127
Tesla Motors (NASDAQ:
) jumped more than 12 percent on Tuesday. The stock has been on
fire since the company reported its first-ever profit earlier in
) was trading up around 9 percent heading into the close. The
reason for the move was not readily apparent, but auto-parts
manufacturers had a strong day overall.
Arena Pharmaceuticals (NASDAQ:
) traded up around 8 percent near the close on a technical
) jumped a little better than 4 percent on the session after the
company's fiscal first-quarter results.
Shares of Vipshop Holdings (NYSE:
) were down almost 15 percent near the close. The stock was
downgraded at Deutshe Bank.
) fell a little less than 8 percent on the session after a
Deutsche Bank analyst downgraded the stock from Buy to Hold.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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