After Market: Stocks Bounce Back Strong with a Temporary 'Peace Dividend'

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As one tweeter wrote Tuesday: "Not even World War III can stop this rally!!!" Russia walked back from the brink, and stocks made a similar about face. After the Russian troops massed along the Ukraine border were ordered back to their barracks by President Putin -- bringing the level of tension in the region way down -- the market regained all of Monday's big losses, and then some.

The Dow Jones industrial average (^DJI) jumped 227 points, its best gain this year. The Standard & Poor's 500 index (^GPSC) rallied 28 -- back into record territory -- and the Nasdaq composite (^IXIC) soared 74 points. It was a broad-based rally with gainers swamping losers by a 9-to-1 margin.

Leading the blue chips: American Express (AXP) rose 3 percent, while Walt Disney (DIS), Goldman Sachs (GS), Pfizer (PFE) and General Electric (GE) all gained 2 percent or more. Airline stocks regained some altitude. Delta (DAL) rose 5½ percent on stronger passenger traffic number. United (UAL) and Southwest (LUV) both gained nearly 3 percent.

Some of the biggest losers on Monday were the Russian stocks that also trade on U.S. exchanges. Not surprisingly, they were big gainers today: Yandex (YNDX), up 6 percent; Qiwi (QIWI) and Lukoil (LUKOY), both up 4 percent.

In the retail sector, J.C. Penney (JCP) rose nearly 4 percent after S&P raised the company's credit rating. And Abercrombie & Fitch (ANF) gained 6½ percent following a Credit Suisse upgrade to "outperform." Despite today's gain, Abercrombie shares are still down 10 percent from a year ago.

But Radio Shack (RSH) was the day's big loser. It tumbled 18 percent as its loss widened and the company said it will close up to 1,100 under-performing stores. Shares of Radio Shack (RSH) are now down 25 percent over the past year.

Ascena Retail (ASNA), which operates the Lane Bryant and Justice chains, fell 3 percent on a weak earnings forecast. Also on the downside: McDermott (MDR) lost 8 percent. The energy services company missed expectations and said it was withdrawing its earnings guidance for the foreseeable future.

But the game maker Zynga (ZNGA) gained 8 percent. It's expanding its real money poker business, and offering new mobile versions of "Words With Friends" and "FarmVille."

What to Watch Wednesday:
  • Moody's Analytics/Automatic Data Processing release February's survey of private-sector hiring at 8:15 a.m. Eastern time.
  • The Institute for Supply Management releases its service sector index for February at 10 a.m.
  • The Federal Reserve releases its Beige Book survey of regional economic conditions at 2 p.m.
These major companies are scheduled to release quarterly financial statements:
  • Coca-Cola Bottling (COKE)
  • FTD (FTD)
  • Hovnanian Enterprises (HOV)
  • Navistar International (NAV)
  • PetSmart (PETM)
  • Revlon (REV)
-Produced by Drew Trachtenberg.


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Iselin007

Unfair trade eventually caught up with the US economy now they blame the unemployment on skills and education like there is a need for 200 million Einsteins. If they could get as many Einsteins as they needed they would be a dime a dozen and drag all the higher wages down to the minimum wage. Companies were displacing brilliant software engineers ect with visa workers who just happened to be from one particular country. Unfortunately for the slick foreign contract agencies some brilliant American techs have gotten together an fought these wise guys in court costing them millions in fines!

March 04 2014 at 11:36 PM Report abuse rate up rate down Reply
Iselin007

Putin is pretty slick he knows were cutting back our military due to our debt problems so he must figure he can throw his weight around without worrying about the US.
China has much of our manufacturing. China plants spy chips in Devices they sell to businesses like CISCO so the company has to inspect everything they import from them. Russia and China both played a role in the Viet Nam War.

If this mess with Russia and Ukraine worsens your going to find out how big a mistake it was letting all those jobs go to China.

March 04 2014 at 10:24 PM Report abuse rate up rate down Reply
Iselin007

"d.barack
What are you talking about ? You are all over the place. What the heck does NAFTA have to do with Putin and Russians applying for jobs in Canada ?"

During the draft for the Viet Nam War some guys went to Canada to avoid the war.
Today there is an all volunteer military but in the advent of a World War the volunteer military would likely return to a draft. With NAFTA those going to Canada would find some jobs that were formerly in the USA.

March 04 2014 at 9:25 PM Report abuse rate up rate down Reply
Iselin007

The markets are so touchy they can hardy be trusted. Do you think that was just a bad joke by Putin but now everything is just find? Russia is too big to think the all volunteer military will handle this problem. If your draft age you might want to sell your stock and Check out some NAFTA jobs in Canada!

March 04 2014 at 9:01 PM Report abuse -1 rate up rate down Reply
qtxusa

I agree with "newprsn." Untold millions can be made simply having a modicum of international news, in advance. It happens all the time. If you believe otherwise, you're quite naive.

March 04 2014 at 7:10 PM Report abuse -1 rate up rate down Reply
alfredschrader

There is a tiny detail you need to know about Coke. Coca Cola is made from two primary ingredients, the cola nut and coca leaves the same plant cocaine is made from.
The coca leaves are de-natured same as coffee is made into decaf leaving only the coca flavor.
But here is the catch, same as decaf coffee is 99% caffein free, coca cola is 99% cocain free, a tiny amount of cocain is still in it. The FDA says the amount is so small as not to be considered an ingredient.
Have you ever found yourself craving a Coke ? Ever wonder why ? You thought it was the caffein.

March 04 2014 at 6:45 PM Report abuse rate up rate down Reply
thefacts22

Incompetence is now what defines our foreign policies,as well as our crippling National Debt....we will pay dearly for our constant mistakes

March 04 2014 at 6:38 PM Report abuse -2 rate up rate down Reply
newprson

Well Putin could have made a killing in the market by knowing he would call back troops and Russian stocks would soar -- bet there is some third party investing for him -- if not he is not as smart as he seems

March 04 2014 at 5:37 PM Report abuse +2 rate up rate down Reply
2 replies to newprson's comment
thefacts22

Putin is a Nationalist,and a Dictator,...it seems that our "reset" policies will not ever work,perhaps ONLY in the mind of our President

March 04 2014 at 6:42 PM Report abuse -1 rate up rate down Reply
Iselin007

I doubt of Putin is going to be charged with insider trading and extridicted to the USA.

March 04 2014 at 9:09 PM Report abuse -1 rate up rate down Reply
Bobbi

THEY CALL TODAY A SURGE AND BOUNCING BACK? WE DIDN'T EVEN MAKE UP WHAT WE LOST YESTERDAY...HOW IS THAT BOUCING BACK....WE ARE STILL LESS THAN WE WERE YESTERDAY....

March 04 2014 at 5:21 PM Report abuse -1 rate up rate down Reply
1 reply to Bobbi's comment
thefacts22

We are in the hands of "crony" speculators,someday it will BLOW

March 04 2014 at 6:44 PM Report abuse rate up rate down Reply