Stocks surged today as investors set aside fears that the Federal Reserve will soon stem its bond-buying that has boosted the economy. The Dow Jones Industrial Average and the S&P 500 – a broader measure of the markets – closed at all-time highs.
The Dow finished today’s session up 169 points at 15,460. The industrials are now up 18 percent this year. All 30 stocks in the Dow finished the session higher. The biggest winners were Intel Corp., The Walt Disney Co. and Microsoft.
The S&P 500 finished today’s session up 22 points at 1675. The S&P is in the midst of its best six-day run in two years. Homebuilders were among the best performers today – PulteGroup, Lennar & D.R. Horton were each up more than 7-percent.
The NASDAQ also posted major gains today. The tech-heavy index is now up 11 of the last 12 trading days to a 13-year high.
So why is your money is such a good mood? Most of the happiness can be traced to the action or shall we say lack of action being taken by the Federal Reserve. Last night Fed Chairman Ben Bernanke declared that he was going to keep stimulating the economy with his massive bond buying program. He said our economy continues to need ”highly accommodative monetary policy for the foreseeable future.”
Investors have also been cheered of late by an improving jobs market, the turnaround in housing and strong auto sales.
The big thing to keep an eye on tomorrow is earnings from two of biggest banks on the street – JPMorgan Chase and Wells Fargo. The results of those two companies and their take on the health of the economy will be key drivers for the last trading day of the week.
|Dow Jones Industrial Average||15460.99||Up 169.33||1.11%|
|S&P 500 Index||1675.04||Up 22.42||1.36%|
|Nasdaq Composite Index||3578.3||Up 57.54||1.63%|