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By Jeffrey
Cane| Tuesday, April 19 Why
Not? Global economic growth looks
weaker, according
to the International Monetary Fund,
yet U.S. earnings growth has so far been robust. Government bond yields
were higher, but two Federal Reserve officials played
down the need for the Fed to be super-aggressive on interest
rates. And crude oil was lower. So with Wall Street's worry meter dialed
down a notch or two, there was no reason not to buy stocks today. The market
ended broadly higher, closing near its highest levels. The S&P 500 rose 1.6%, after
two days of declines, for its best performance since March 16. All but one of
its 11 sectors – energy – ended with gains. The Dow Jones Industrial Average
closed up 1.45%, while the Nasdaq Composite surged
2.15%. Netflix could weigh on media stocks tomorrow after
said it lost 200,000 net subscribers in its most recent quarter and expects
to lose two million net subscribers in its current quarter. The stock was
down nearly 26% in after-hours trading. More on that below. On the bright side, IBM
rose in after-hours trading after reporting
first-quarter results that were better than expected. Travel-related stocks were strong performers
today, a day after a federal judge in Florida ruled that the public
transit mask mandate was unlawful: American Airlines
(up 5.7%), Uber Technologies (up 6.3%) Norwegian
Cruise Line and Carnival (both up 4.6%), and Wynn
Resorts (up 5.9%). Banks also did well. Signature
Bank led the S&P 500 with a 8.1% gain, while Citizens
Financial Group was not far behind, rising 6.8%. Both had
earnings beats. JPMorgan Chase, whose results
last week disappointed, ended 2.1% higher today. Strong earnings helped lift Johnson
& Johnson 3.1%. "Aside from earnings, investors seem to
be in dip-buying mode, which might have been the real driver of Tuesday’s
market action," noted Jacob Sonenshine and Jack
Denton on
Barrons.com today. Treasury
yields, meanwhile,
continue to climb. The yield on the benchmark 10-year note rose to
2.911% – its highest settlement since Dec. 13, 2018 – from 2.861%
yesterday. Crude oil futures slumped 5.22%, to $102.56 a barrel.
Oil is now off 17% from its March 8 high of $123.70 a barrel. Get tips for
tackling your personal finance questions. Join MarketWatch's Mastering
Your Money event tomorrow, when topics will include how to manage
expenses in a time of high inflation, how to handle student loans with
the repayment holiday ending, and how to invest amid volatility and
uncertainty. |
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DJIA: +1.45% to 34,911.20 The Hot Stock: Signature
Bank +8.1% Best Sector: Consumer
Discretionary +2.9% |
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