Stocks Rally to End the Month
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U.S. stocks discounted poor economic data Tuesday to rally with the rest of the world, ending a tumultuous month for equities.
After starting the session strong on solid gains overseas, stocks dipped midday only to rally to the highs to end the session. The Dow closed up 1 percent, or 128 points, to 12,570, the S&P 500 jumped 14 points to 1,345 and the Nasdaq added 38.44 to 2,835.
Instead of looking at the weak economic reports in the U.S., the market focused on events in Europe which have created havoc with U.S. markets of late. Most prominent was a possible aid package for debt-laden Greece.
On the economic front: housing data, consumer confidence and PMI in the Chicago area all were worse than expected.
The S&P/Case-Shiller index of home prices fell 0.23 percent from February and 3.61 percent from March of last year to 138.16. The declines were slightly more than expected: economists had been looking for a month-over-month decline of 0.2 percent and an annual decline of 3.4 percent.
The Board's Consumer Confidence Index fell to 60.8 in May, down from 66.0 from April. The reading was also worse than the 66.6 economists had expected.
The Chicago-area purchasing manager's index for the month of May read 56.6, vs. the consensus of 62 and down sharply from a prior reading of 67.6.
In individual stocks, Apple (Nasdaq: AAPL) surged over 3 percent after it was announced CEO Steve Jobs, who is on medical leave, will give the keynote address as the World Wide Developers Conference. In addition, it was reported the company reached a deal with record labels over terms of its cloud music platform.
After starting the session strong on solid gains overseas, stocks dipped midday only to rally to the highs to end the session. The Dow closed up 1 percent, or 128 points, to 12,570, the S&P 500 jumped 14 points to 1,345 and the Nasdaq added 38.44 to 2,835.
Instead of looking at the weak economic reports in the U.S., the market focused on events in Europe which have created havoc with U.S. markets of late. Most prominent was a possible aid package for debt-laden Greece.
On the economic front: housing data, consumer confidence and PMI in the Chicago area all were worse than expected.
The S&P/Case-Shiller index of home prices fell 0.23 percent from February and 3.61 percent from March of last year to 138.16. The declines were slightly more than expected: economists had been looking for a month-over-month decline of 0.2 percent and an annual decline of 3.4 percent.
The Board's Consumer Confidence Index fell to 60.8 in May, down from 66.0 from April. The reading was also worse than the 66.6 economists had expected.
The Chicago-area purchasing manager's index for the month of May read 56.6, vs. the consensus of 62 and down sharply from a prior reading of 67.6.
In individual stocks, Apple (Nasdaq: AAPL) surged over 3 percent after it was announced CEO Steve Jobs, who is on medical leave, will give the keynote address as the World Wide Developers Conference. In addition, it was reported the company reached a deal with record labels over terms of its cloud music platform.
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