Stocks Quietly Rally Despite Worries
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Stocks started lower Wednesday, but picked up steam mid-day and ended sharply higher. Volume was on the light side for the second day in a row, which some investors welcomed after the feverish pace of macro news over the past few weeks.
The Dow rose 67 points to 12,086, while the Nasdaq added 14 and the S&P 500 ended up 4.
Stocks rallied despite a jump in crude prices above $105 per barrel, which is related to ongoing US military operations in Libya and general market unease about the Middle East.
New worries in bankland surfaced after Bank of America (NYSE: BAC) said the Federal Reserve objected to its plan to modestly increase its common dividend in the second half of 2011. The news from the nation's largest bank came on the heels of dividend hikes across the board from large bank rivals, including JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC). BofA shares closed down 1.7 percent.
Cree Inc. (Nasdaq: CREE) sunk 12.5 percent after lowering its third-quarter financial guidance due to lower sales of LED chips and components.
On the economic front, new-home sales plunged to an all-time low last month, adding to fears of a double-dip recession in the housing market. Sales of new homes fell an astonishing 16.9 percent to an annual pace of 250,000 in February, while slipped to an eight-year low.
News that the parliament in Portugal rejected the minority Socialist government's proposal for austerity measures broke just before the US market closed, so traders will look to the European market open to gauge investor sentiment heading into Thursday’s trade.
The Dow rose 67 points to 12,086, while the Nasdaq added 14 and the S&P 500 ended up 4.
Stocks rallied despite a jump in crude prices above $105 per barrel, which is related to ongoing US military operations in Libya and general market unease about the Middle East.
New worries in bankland surfaced after Bank of America (NYSE: BAC) said the Federal Reserve objected to its plan to modestly increase its common dividend in the second half of 2011. The news from the nation's largest bank came on the heels of dividend hikes across the board from large bank rivals, including JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC). BofA shares closed down 1.7 percent.
Cree Inc. (Nasdaq: CREE) sunk 12.5 percent after lowering its third-quarter financial guidance due to lower sales of LED chips and components.
On the economic front, new-home sales plunged to an all-time low last month, adding to fears of a double-dip recession in the housing market. Sales of new homes fell an astonishing 16.9 percent to an annual pace of 250,000 in February, while slipped to an eight-year low.
News that the parliament in Portugal rejected the minority Socialist government's proposal for austerity measures broke just before the US market closed, so traders will look to the European market open to gauge investor sentiment heading into Thursday’s trade.
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