Mar. 23, 2009 (Investor's Business Daily) -- Better-than-expected existing home sales numbers and details of the Treasury's plans to neutralize subprime mortgage-based "toxic" assets sparked markets to a year-to-date best performance.
The advance left major indexes at their highest marks and above their 50-day moving averages for the first time since early January. Volume was lower than Friday, a day boosted by options expiration activity to the NYSE's highest volume so far this year.
Bank Of America (BAC) JP Morgan Chase (JPM) and Citigroup(C ) led the Dow. Wynn Resorts (WYNN), NII Holdings (NIDH) and Paccar (PCAR)topped the Nasdaq 100.
No significant economic news is on the docket for Tuesday. On Wednesday, durable goods numbers and new homes sales data for February are due out from the Department of Commerce. The Energy Information Administration will release weekly crude oil inventories data.
On the earnings calendar, Williams Sonoma (WSM) and Commercial Metals (CMC) will report Q4 earnings prior to the market opening. Oil and gas production equipment maker Robbins & Myers (RBN) plans to releases earnings after the close.
4:15 p.m. Update: Stocks Notch One Of Biggest Gains Of 2009
BY JUAN CARLOS ARANCIBIA
The major indexes closed with huge gains as a late burst added to the day's already hefty advance.
The NYSE composite soared 7.3%, the S&P 500 7.1%, the Nasdaq and Dow 6.8%.
For the NYSE indexes it was the best day of the year so far. The S&P 500 closed above its 50-day moving average for the first time since Feb. 9.
Volume fell, according to preliminary data, although Friday's trading swelled on options expirations.
Financial and real estate stocks led the market after the government detailed a plan to soak up bad assets from institutions' balance sheets. Investors also cheered a better-than-expected home sales report.
3:15 p.m. Update: Stocks Remain Near Session Highs In Late Trade
BY ALAN R. ELLIOTT
Indexes held at the top of their intraday ranges as the market headed to one of its biggest gains of the year.
The NYSE composite defended its 5% advance. The Dow and S&P 500 each showed 4.4% gains, and the Nasdaq composite rode a 4% win.
Volume was tracking higher across the board.
All but one of IBD's 197 industry groups posted gains. The holdout, gem miners, remained unchanged.
Rocky Mountain gas and oil producer Bill Barrett (BBG) spiked 10% higher, though trading was light. The Denver-based operation is trying to heave itself off the floor of an eight-month correction.
On the downside, HMS Holdings (HMSY) gave up 5% in fast trade. That drove the provider of health care management services back below its 50-day moving average, leaving it 17% off its previous high.
2:15 p.m. Update: Stocks Stay High; Volume Now Above Average
BY PATRICK CAIN
Stocks stayed near highs as investors continue to digest the details in the government's plan to clean up banking balance sheets.
The Dow gained 3.8%, the S&P 500 3.8% and the NYSE composite 4.4%. The Nasdaq added 3.5%.
Volume turned higher across the board, but trade on the NYSE was faster than the Nasdaq, which is only a little more than even with Friday's trade.
NetEase.com (NTES), a Chinese Internet gaming firm, rose 6%. The stock was about 2% above a 23.02 buy point. The stock has a weak operating-cash-flow-to-earnings ratio.
China's national offshore driller CNOOC (CEO) broke out of a double-bottom base. The stock passed its 99.48 buy point Friday, but confirmed its move today with a 10% gap-up. The move puts it right up against its 40-week moving average.
Alexion Pharmaceuticals (ALXN) leapt 4%. The biomed/biotech stock is fighting with its 200-day moving average.
There are few stocks down today, just 11 in the S&P 500. But the S&P is struggling to get by technical roadblocks such as 800 and its 50-day moving average, which is just below 800.
Overall, advancers were outpacing decliners by an 11-to-2 margin.
1:15 p.m. Indexes Stab To New Highs, But Trade Is Soft
BY ALAN R.
