Author Adam Shell and Kim Hjelmgaard, USA TODAY
By Danny Micelotta
Stocks pushed higher Tuesday, just a day after gold and oil prices fell sharply on Monday. The result was a large selloff that included commodities and gold. All three major U.S. stock indexes – the Dow Jones industrial average, Standard and Poor’s 500 stock index and the NASDAQ composite index were rising in value before noon. Gold fell more than 9% leading to record-setting sell-offs which is probably the cause of the stock weakness. As the stock moves lower, the stocks will become increasingly volatile. One reason for the market rebound was the strong earnings reports from Coca-Cola and Johnson & Johnson. In addition, the financial firms Goldman Sachs and BlackRock also reported better expected earnings which helped increase the market. Stocks also gained a substantial boost from March housing starts rising 7%. Tech firms Intel and Yahoo also reported profits on Tuesday. Stocks will most likely be driven by corporate earnings for the rest of the week.
China growth data and Boston marathon bomb greatly shook confidence, which resulted in the Dow falling 1.8%, the S&P 500 index 2.3%, and the NASDAQ 2.4%. Although stocks are showing signs of bouncing back, Robert Sluymer, technical analyst at RBC Capital Markets, says a market correction is underway and “does not appear to be finished.” Benchmark oil for May delivery also fell 11 cents to $89.25 per barrel in electronic trading on the New York Mercantile Exchange. Japan’s Nikkei index fell 0.41% regressing from last week’s multiyear highs. Although the stock market faced a significant drop Monday, the market rebounded rapidly and satisfied some of investors’ concerns. However, analysts are still on the fence as to whether or not the market will continue to surge or face more significant drops as we move deeper into the week.