Closing Bell: Stocks Continue Rally on Upbeat Economic News

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Contractors work on a KB Home Vicino community in San Jose, California. David Paul Morris/Bloomberg
David Paul Morris/Bloomberg
Markets extend rally: Following Monday's rise, stocks kept their upward momentum going Tuesday. Market were buoyed by two positive economic reports, showing a pick up in the number of housing starts and low consumer inflation. The Dow industrials (^DJI) jumped 139 points to close just below 15,320. The Nasdaq (^IXIC) gained 31 points, and the S&P 500 (^GSPC) added 13.

Today's top stories:
  • The consumer price index in May rose just 0.1 percent -- a tenth of a percent lower than analyst forecasts -- after excluding volatile food and energy costs. Housing starts for the month rose 6.8 percent to a seasonally adjusted annual rate of 914,000 -- less than than the 11.4 percent rise analysts had forecast, but still healthy.
  • Investors also reacted to news that Sprint Nextel (S) is suing both Dish Network (DISH) and Clearwire (CLWR) to block a planned merger. Shares of Clearwire fell 1.3 percent, while Sprint and Dish both rose.
  • The rise in stocks came ahead of the conclusion Wednesday of a two-day meeting by Federal Reserve officials on how much longer the Fed will maintain its aggressive bond-buying program and record low interest rates.
  • In addition to the conclusion of the Fed meeting, items on the economic calendar to watch Wednesday include weekly reports on the number of new mortgage applications from the Mortgage Bankers' Association and crude-oil inventories from the Energy Information Administration.
  • On the earnings front, FedEx (FDX) is set to report earnings before U.S. markets open Wednesday. Analysts expect FedEx to report slightly lower profits but higher revenue. The company recently has seen a slump in high-end express-delivery services as businesses and consumers save money by switching to cheaper but slower shipping options. Analysts forecast that FedEx earned $1.96 a share in its fiscal fourth quarter on revenue of $11.46 billion, according to a FactSet survey.
The Associated Press contributed to this report.


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98 Comments

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fulredy

The billionaires are taking their profits. When the QE train comes to an end, the market will crash. It won't be pretty.

June 19 2013 at 3:52 AM Report abuse +3 rate up rate down Reply
1 reply to fulredy's comment
rkeeeballs

The sky is falling......so be a good sheep and sell ! The billionaires are waiting in the wings for the panic ,to lower their price back in the markets...This coming after they took the recent profits....your move.

June 19 2013 at 7:55 AM Report abuse rate up rate down Reply
josephautomotive

been watching the market almost daily for months now, waiting for it to go down in hopes of finding a good entry point, and it looks like its not going to go down anytime soon...........

June 19 2013 at 12:23 AM Report abuse -1 rate up rate down Reply
wasbigelild

The consumer price index in May rose just 0.1 percent -- a tenth of a percent lower than analyst forecasts.
A full 50% less then forecast.
Housing starts for the month rose 6.8 percent to a seasonally adjusted annual rate of 914,000 -- less than than the 11.4 percent rise analysts had forecast.
600,000 fewer housing starts then forecast..

The Consumer price index didn't rise as much as expected.
Housing starts rose 6.8%, not 11.4%, as expected.

Quick recap, price index rose half of what was expected and 600,000 fewer housing starts is enough to make the market so giddy, it rose 139 points.
Can anybody explain this to me?

June 18 2013 at 11:45 PM Report abuse +2 rate up rate down Reply
springgg

Oh, the pain of being a Republican! It just can't be! The economy is bouncing back!!!! Noooooo!

June 18 2013 at 10:27 PM Report abuse -4 rate up rate down Reply
ole.obamy.failedagain

OBAMY ECONOMY=="BENGHAZI"~"SPYING"~"BENGHAZI"~"SPYING"

June 18 2013 at 10:16 PM Report abuse +3 rate up rate down Reply
1 reply to ole.obamy.failedagain's comment
springgg

There is no "Benghazi" scandal. There is no IRS scandal. Obama got Bin Laden to avenge the deaths of thousands on 9/11 while Bush went after oil and defense contracting money and did so by selling the wars to the Chinese for $1.7 tril and didn't put it in the budget!!! There is no Obama failure. Hop on the Issa Salem Witch Hunt buddy!

June 18 2013 at 10:30 PM Report abuse -6 rate up rate down Reply
SPQR

There are foreclosed homes everywhere. Why are they building new ones? For the illegals who will get amnesty? Hmm they may be the only ones with jobs

June 18 2013 at 10:08 PM Report abuse +1 rate up rate down Reply
SPQR

There is no good economic news so why did the market really go up? Maybe Stansberry is right !!!

June 18 2013 at 10:06 PM Report abuse +2 rate up rate down Reply
maxinetoneitdown

Unemployment is still very high in the black community. Last time I brought that up President Obama told me to stop crying and stop complaining. What nerve. Tell that to the people that are trying to put food on their tables and a roof over their heads. Seems like all President Obama was concerned about at election time was saving his own job. What a slap in the face to our community.

June 18 2013 at 9:57 PM Report abuse +6 rate up rate down Reply
1 reply to maxinetoneitdown's comment
obamasacrybaby

So what if all I cared about was saving my own job.

Wahhhhhhhhhhhhhhh. Stop picking on me or I'll have the IRS target you.

June 18 2013 at 10:00 PM Report abuse +4 rate up rate down Reply
rich_paddlyrich

So glad the republican party lost in 2012.

June 18 2013 at 9:55 PM Report abuse -7 rate up rate down Reply
1 reply to rich_paddlyrich's comment
obamasacrybaby

Yeah but I had to lie to win.

June 18 2013 at 9:58 PM Report abuse +3 rate up rate down Reply
demcoverup

Gotta go now Piddle Paddle. Have fun playing with yourself (literally). If you get bored just cut a hole in your other pocket.

LMMFAOOOOOOOOOOOOOOOOOOOOOOOOOO

June 18 2013 at 9:46 PM Report abuse +2 rate up rate down Reply