After Market: When Yellen Talks, Investors Smile - and Buy

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For years we've talked about Bernanke-inspired rallies. Tuesday brought the market its first Yellen-inspired rally.

New Fed Chair Janet Yellen reassured the market that it could expect more of the same from the central bank. In congressional testimony, she promised "a great deal of continuity" with the policies of her predecessor, Ben Bernanke. Yellen said she was surprised by the weak pace of job growth in December and January, but did not want to "jump to conclusions" about the longer-term implications.
Yellen Testimony
AP/Cliff OwenFederal Reserve Chair Janet Yellen testifies on Capitol Hill Tuesday.
Investors liked what they heard. TheDow Jones industrial average (^DJI) soared 193 points and the Standard & Poor's 500 index (^GPSC) gained 20, extending a 4-day rally that is its best since late 2011. And the Nasdaq composite (^IXIC) rose 43 points, putting it back in positive territory for 2014.

Among the blue chip leaders: Boeing (BA) and Goldman Sachs (GS) both up 2 percent. Goldman is getting out of the business of trading uranium.

This was a broad-based rally, with the number of gainers swamping the number of losers.

Newmont Mining (NEM), Goldcorp (G) and other gold-related stocks were strong as the price of gold continued to rise.

Green Mountain Coffee Roasters (GMCR) remained in rally mode following its deal last week with Coca-Cola (KO) to provide in-home systems to make single-serve cold drinks. It gained 7½ percent today and over the past week it's soared 49 percent.

Cadence Pharmaceuticals (CADX) jumped 26 percent after agreeing to be acquired by Mallinckrodt (MNK), which rose 11 percent. ComScore (SCOR) also rose 11 percent. It named a new CEO and reached a deal to provide ratings services for Google (GOOG).

The losers were led by two tech service providers.

Infoblox (BLOX) tumbled 48 percent on a weak earnings forecast. And Rackspace (RACK) fell 19 percent. Net fell more than expected and its CEO resigned.

And several food companies got chewed over. ConAgra (CAG) fell 6 percent after lowering its outlook for the year. Dean Foods (DF) dropped 7 percent due to an earnings miss. It was hurt by the rising price of milk. And the natural foods company Annie's (BNNY) fell 8½ percent after slashing its full year outlook.

What to Watch Wednesday:
  • The Energy Information Administration releases weekly data on petroleum inventories at 10:30 a.m.
  • The Treasury Department releases January budget figures at 2 p.m.
These major companies are scheduled to report quarterly financial results:
  • CBS (CBS)
  • Cheesecake Factory (CAKE)
  • Cisco Systems (CSCO)
  • Deere (DE)
  • Equifax (EFX)
  • Lorillard (LO)
  • Mondelez (MDLZ)
  • Nvidia (NVDA)
  • Owens Corning (OC)
  • Thomson Reuters (TRI)
  • Whole Foods Market (WFM)
  • Zillow (Z)
-Produced by Drew Trachtenberg.


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jwmgrand

Nice Rally ....... to bad that the next correction will be three times todays rally downward ...... - 600 points ........ if the news was so great ......why did gold continue its move upward .. all they are doing is re-arranging the deck chairs ...... instead of a yes Man .....we listened to a yes Woman today ..... Yes we know that is not good and Yes the mortgage market was hurt ...... she said a alot of words ....that had zero meaning ! She did not even know how may hours .. the Fed considers to be a full time worker ....... she was pressed over and over ... till somebody FINALLY gave her the answer ...... When asked .. who will protect the citizens from these banking crooks ......she says the Fed will cooperate with the Justice dept ... Gee I will sleep better knowing that ........ todays dog and pony show ... with the nice fed lady at the microphone .did what it was supposed to ....... calm the panic in the market ... but the fact of the matter is ..are next trip down when we test and retest key levels will fall short ... dont pop the bubbly yet ...we will retest 1600

February 11 2014 at 11:40 PM Report abuse -1 rate up rate down Reply
Iselin007

The more jobs, hours, and people they cut the higher the stock market goes. It's just like the sweatshops this country had back in the days of the first financial titans.

February 11 2014 at 10:43 PM Report abuse rate up rate down Reply
worried man

I am taking every penny I have and buying stocks! We are guaranteed free money forever!!!

Trillions will pour into the market and no one cares !!!!! YAY The market will hit 20,000

February 11 2014 at 9:07 PM Report abuse +1 rate up rate down Reply
1 reply to worried man's comment
Iselin007

Trillions are owed for the deficit an no one cares. Thanks to technology adding zeros means you can raise the value of stocks with out having any real value!

February 11 2014 at 10:37 PM Report abuse rate up rate down Reply
alfredschrader

Like I said the big drop was caused by a triple hit of rent time, high heating bills, and Christmas credit card bills all hitting at once. The Money Managers had to convert stocks into cash to cover the checks. Now, the cash is going back into the markets. Yellen is a facter but not the fundamental driving the re-bound. Except for two stocks, in 35 years I've never lost in the markets.

February 11 2014 at 8:36 PM Report abuse -2 rate up rate down Reply
dr scott kanner

The 4 trillion dollars worth of bonds the fed has purchased since 2008 were paid for with monopoly money

February 11 2014 at 6:45 PM Report abuse +2 rate up rate down Reply
2 replies to dr scott kanner's comment
merstockgto

Monopoly money or not but my stock portfolio has done very well the last 34 years

February 11 2014 at 8:57 PM Report abuse +1 rate up rate down Reply
Iselin007

The Monopoly guy on the box is supposed to be JPM.

February 11 2014 at 10:29 PM Report abuse rate up rate down Reply
boowah

You know what they say about negotiations between adversaries? As long as they're talking, we're ok! The same applies to the Stock Market. As long as Yeltsen is talking, we're ok!

February 11 2014 at 5:37 PM Report abuse -5 rate up rate down Reply
1 reply to boowah's comment
Ken

Yeltsen was the former Russian President...

February 11 2014 at 6:18 PM Report abuse rate up rate down Reply
pm0501

LOL.... Watch these gains evoporate by the 14th!

February 11 2014 at 5:31 PM Report abuse -2 rate up rate down Reply