Dow notches 2nd record close in week
NEW YORK — Materials and energy companies led the stock market higher on Tuesday, sending the Dow Jones industrial average to its second high in a week.
The Dow closed at 14,673.46, a gain of 59.98 points, or 0.4 percent. The Standard & Poor's 500 index rose 0.4 percent, closing less than two points below its high set April 2.
Oil is rising from a sharp decline last week.
“You're seeing some pretty decent action in the overall market, with today's leadership coming from the basic materials sector,” said Robert Pavlik, chief market strategist at Banyan Partners. “It's an area of the market that does represent some value because it's underperformed.”
The rally in basic materials such as precious metals was caused by a weakening of the dollar against other currencies, HSBC analyst Howard Wen said. Commodities are typically priced in dollars, and a decline in the currency allows overseas buyers to purchase materials at lower prices.
Materials companies were the biggest gainers of the 10 industry groups in the S&P 500, rising 1.1 percent. Energy companies posted the second best return, advancing 0.8 percent. The two groups have been among the weakest in the market this year.
The S&P 500 rose 5.54 points to 1,568.61. The index closed at a high of 1,570.25 on April 2. The Nasdaq composite gained 15.61 points, or 0.5 percent, to 3,237.86.
The gains suggested that the Dow and S&P 500 may be poised to break out of a trading pattern they've followed for the past three weeks.
Stocks have mostly moved sideways since the middle of March. The Dow has alternated between small gains and losses since starting the year on a tear.
Signs of slowing growth and concerns about the outlook for Europe had checked investors' confidence.
As companies report results this week, investors will be looking to see whether they are feeling any impact from government spending cuts that kicked in recently, said Jim Russell, investment director at U.S. Bank. They will also want to know what effect there will might from the ongoing debt crisis in Europe.
Alcoa, traditionally the first company in the Dow to report results, was flat at $8.39 after the company posted its earnings late Monday. Online auto retailer CarMax, home goods retailer Bed Bath & Beyond and the banks Wells Fargo and JPMorgan Chase report later this week.
“The market is looking for companies to fill in those blanks,” said Russell.
Cliff's Natural Resources, an iron ore mining company, rose $1.66, or 8.8 percent, to $20.45. The company's stock is still down 47 percent this year. Freeport-McMoRan Copper & Gold, another mining company, was up $1.34, or 4.1 percent, at $33.76.
First Solar soared after the solar panel maker issued a better-than-expected forecast for its 2013 results and solid predictions for the following two years, helped by continued growth in shipments. The stock price rose $12.31, or 46 percent, to $39.35.
Small company stocks lagged the market. The Russell 2000 index two points, or 0.2 percent, to 929.34. The index has slumped this month after rising 12 percent in the first quarter and performing better than both the Dow and S&P 500.
While stocks are struggling to extend their gains from the start of the year, bonds have rallied.
The yield on the 10-year Treasury note was unchanged at 1.75 percent Tuesday. However, the benchmark rate has fallen from a high of 2.06 percent reached March 11 as demand for low-risk assets increases.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- More employers adopt generous leave policies
- For some small-business owners, fast, short-term loans have unsustainable interest
- Anxiety pervades town built by Volkswagen during emissions-cheating scandal
- Small-scale solar power market draws big utilities
- Koppers CEO believes struggling company can do better, transform
- Analysis tallies death toll from Volkswagen diesels’ air pollution
- ATMs to give cash without your card
- States extend $1.5B in breaks for data centers
- Credit bureau Experian keeps info on cellular firm’s customers
- Many losers, few winners for 3Q funds
- How companies may adjust to tax on employee benefits