Stocks Rebound, S&P Hits Record as Investors Cheer Easing of Ukraine Tensions
NEW YORK (TheStreet) -- U.S. stocks rebounded Tuesday, the S&P 500 closing at a new record high as investors cheered subsiding tensions in Ukraine.
Elevated concerns about a Ukraine-Russia conflict were relieved after a reported Russian military deadline for Ukrainian forces in Crimea to surrender passed without consequences. Russian President Vladimir Putin ordered troops back to base by Friday and said at a press conference Tuesday that any show of force would be a measure of "last resort." He added that, if called for, Russia would protect Russians in Ukraine by all means necessary. Secretary of State John Kerry said the U.S. was working with the International Monetary Fund to assess financial need in Ukraine and pledged $1 billion in U.S. loan guarantees for Ukraine's new leadership.
- The Dow Jones Industrial Average closed 1.41% higher at 16,395.76 while the S&P 500 was up 1.53% to a record 1,873.89. The Nasdaq gained 1.75% to 4,351.97.
- International markets rose, with the FTSE 100 in London finishing up 1.72%, the DAX in Germany closing up by 2.46%, the Hong Kong Hang Seng settling up 0.7%, and the Nikkei 225 in Japan closing up 0.47%.
- U.S. markets closed sharply lower Monday as risk aversion spread across global markets amid the potential conflict in Ukraine.
- In other economic news, the Organization for Economic Cooperation and Development said Tuesday that the annual rate of inflation in its 34 developed-country members rose to 1.7% from 1.6% in December. In the Group of 20 leading industrial and developing nations, it fell to 2.6% from 2.9%. Annual price rises of 2% are viewed as consistent with healthy economic growth.
- Top gainers in the S&P included Avery Dennison
which jumped more than 5% after Bank of America added the stock to its focus list. The broker expects Avery Dennison to post above average EPS growth after recent underperformance.
gained 0.48% after it won a U.S. judge's ruling that a multibillion-dollar pollution judgment in Ecuador was reached by fraud. Tesla rose 1.72% after announcing at the Geneva Motor Show that it will open more than 30 new service centers and stores across Europe to address a growing customer base and that it will keep expanding its Supercharger network in the continent. Abercrombie & Fitch jumped 6.48% being boosted to "outperform" from "neutral" at Credit Suisse. RadioShack plunged nearly 17% after announcing fourth-quarter results that missed expectations by a wide margin as same-store sales dived 19%. The electronics retailer said that it plans to shutter as many as 1,100 of its underperforming stores in the U.S.
-- By Jane Searle and Andrea Tse in New York