Wall Street Sees Bargain Hunting Tuesday!

Market Summary

Wall Street posted strong gains on Tuesday, rebounding nicely following the worst session of 2013. Investors swooped in from the start to pick up stocks on the pullback. It is a great sign for the market that the decline was met with buyers a day later. There wasn’t much going on during the trading day in way of news outside of a service sector reading and of course the usual earnings releases. The blue chips were unable to regain the 14K mark as the Dow Jones Industrial Average ended up 99.22 points, or 0.7%, to 13,979.30. The S&P 500 climbed 15.58 points, or 1%, to 1,511.29, with technology performing best among its 10 sectors groups, all of which ended higher. The Nasdaq Composite Index advanced 40.41 points, or 1.3%, to 3,171.58, the best performer of the three major indices after leading Monday’s decline.

Crude oil for March delivery rose 47 cents, or 0.5%, to settle at $96.64 a barrel on the New York Mercantile Exchange.The rally in equities sent gold lower, ending a two session winning streak. The precious metal fell $2.90, or 0.2%, to settle at $1,673.50 an ounce.

Economic Rundown

The January Non-Manufacturing Index from the Institute of Supply Management fell slightly to 55.2 from December’s 55.7 reading, which saw one of the strongest one month gains in the 15 year history of the report. The number fell right in line with consensus estimates. The service sector, which accounts for the majority of economic activity in the US, is growing at a very healthy pace. The reading was led by the report’s employment index jumped 2.2 points in January to 57.5 which is the strongest rate of monthly growth since February 2006.

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