A Mixed Finish for Markets With No News to Tip Big Swings
After spending much of the day in the doldrums, the S&P 500 recovered to close a mere 0.02% lower but still higher than a record-breaking 1,950-level set on Monday. The Dow Jones Industrial Average tiptoed 0.02% higher to 16,945.92, while the Nasdaq added 0.04% to 4,338.
The S&P 500 has been ripping higher over the last month, chalking up gains of 5.5% over the year so far. While bears in early February warned that the S&P 500 had dropped below its 50-day moving average, and again on April 10, the benchmark index continues to make new highs albeit on less and less volume.
Bearish contrarians remain on full alert, but "we've been running with the bulls, and continue to do so," Yardani Research chief investment strategist Ed Yardeni wrote in a note. "However, we see the same old reasons for doing so." The major central banks continue to pump liquidity into financial markets and, while some of that liquidity is boosting economic growth, much of it is inflating asset values. Economic growth has been "subpar" in both the U.S. and overseas during the current bull market, but earnings have been very strong.
One company not included among the better-than-expected earnings seen this season is RadioShack
Big pharma stock Allergan
High-momentum internet names were moving higher even with little incentive. Facebook
Retail name Chico's
European stocks were mixed on Tuesday, with U.K. indices losing ground as news of strong industrial output increased the chances of a near-term rate rise. Asian indices took their cue from Wall Street and closed largely in the green, though Japanese markets retreated as the yen rose.