Stocks moved higher throughout much of the trading session on Tuesday, although the major averages gave back some ground going into the close. The strength in the markets came as traders used the weakness in the two previous sessions as a buying opportunity.
Robert Loest, senior portfolio manager at Integrity Mutual Funds, told RTT News that the upward move reflects the continuation of a bear market rally, which he said could last for another couple of weeks.
However, Loest said that he would be surprised is the rally lasted longer than that, predicting that an awful first quarter earnings season would put an end to the rally. I don't think we should look for any good news on the earnings front, he warned.
Weak economic data helped to limit the upside for the markets, with a report from Standard and Poor's showing that home prices fell at a record annual rate in January.
The major averages pulled back well off their highs for the session in late day trading but managed to remain firmly positive. The Dow closed up 86.90 points or 1.2 percent at 7,608.92, the Nasdaq closed up 26.79 points or 1.8 percent at 1,528.59 and the S&P 500 closed up 10.34 points or 1.3 percent at 797.87.
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