Stocks Ride Home Depot as Bullard Boosts Bulls
NEW YORK ( TheStreet) -- U.S. stocks rallied off session lows on Tuesday as St. Louis Federal Bank President James Bullard said quantitative easing remains the best monetary policy option right now.
Bullard, speaking in Frankfurt, said financial markets have demonstrated that the bank's stimulus efforts have aided the U.S. recovery following the 2008-2009 recession.
The S&P 500 gained 0.17% to close at 1,669.16.
Bullard, a voting member of the bank's influential Federal Open Market Committee, said the Fed should continue with its bond-purchasing program because it's still the best way to stimulate the sluggish economic growth. "Quantitative easing is closest to standard monetary policy, involves clear action and has been effective," Bullard said.
"You're going to hear
Markets were bolstered by Home Depot
"Investors are less fearful that economic growth may be too slow," Ed Yardeni, New York-based chief investment strategist at Yardeni Research, wrote in a note. "They seem to be less concerned about the 'stall speed' scenario, in which slow growth morphs into negative growth, i.e., a recession," "So they are less fazed about the phasing out of QE."
JPMorgan Chase shares popped 1.4% to $53.02 after a proposal to split Jamie Dimon's dual roles as CEO and chairman failed during the company's annual meeting on Tuesday. Press reports had suggested Dimon could quit if the vote had gone against him.
Home Depot gained 2.5% to $78.71 after posting first-quarter earnings that beat expectations by 6 cents at 83 cents a share, as revenue also topped forecasts. The company hiked its full-year earnings and sales outlook. "We continue to see benefit from a recovering housing market that drove a stronger-than-expected start to the year for our business," CEO Frank Blake said in a statement.