After Monday's potent day of selling, the market has simply done a 180 degree turn with 2 strong days and today the S&P 500 finally went positive for the year and finished at new all time highs (fractionally). The S&P 500 added 0.52% and the NASDAQ 0.76%. In economic news:
In its latest Beige Book report on business activity, the Fed said the economy grew at a moderate pace from late November through the end of 2013, with some regions of the country expecting a pickup in growth. The seasonally adjusted Producer Price Index rose 0.4 percent last month, the biggest increase since June, although inflation pressures remained benign. The Federal Reserve Bank of New York's "Empire State" index of general business conditions climbed to its highest level in 20 months.
All systems go on the indexes, although we can see in our NASDAQ chart we are nearing that point of very long term resistance once more. We've added the Russell 2000 chart which focuses on smaller cap names below to show the strength is broad.
Bank of America, the No.2 U.S. bank, reported a stronger than expected quarterly profit, driven by a steep fall in mortgage losses and provisions to cover bad loans. Fourth quarter net income rose to $3.18 billion, or 29 cents per share, from $367 million, or 3 cents per share, in the same quarter of 2012 when profit was dented by about $5 billion of mortgage-related charges. Analysts had expected earnings of 26 cents per share. Provisions for credit losses fell to $336 million from $2.2 billion in the fourth quarter of 2012.
Apple (AAPL) gained after China Mobile said advance orders for iPhones had hit 1 million.
After the closing bell, major railroad company CSX Corp (CSX) reported fourth quarter earnings and sales that were slightly below expectations. Shares are down 3% in after hours (not shown on chart) but you can see how fantastic of a run it has been for this name as the transportation sector as been on fire.
Returning to a name we highlighted last week as a breakout on volume, Chinese internet company YY (YY), took a few days to rest and the past 2 sessions started a new gallop.