Markets closed up on Wall Street: DJI +0.56% SP500 +0.29% Nasdaq +0.54% Gold +0.73% Oil +0.37%.
Today’s market action had no good fundamental rationale. There was a bombing in Israel, US new home sales collapsed, Libya is a war, and now Tokyo’s drinking water is unfit for babies. With that said, when the Dow (NYSE:DIA) broke out from a daily double-top at about 12:20, markets popped for the remainder of the day.
Today’s markets were up because:
1) Basic Materials and Precious Metals were hot. Freeport-McMoRan (NYSE:FCX) CEO Richard Adkerson said the company is in a position to make acquisitions, and speculators ran to the sector. The bombing in Jerusalem stoked the fire as precious metals such as Gold (NYSE:GLD) and Silver (NYSE:SLV) set new highs. Don’t Miss: Wall Street is Loving These Basic Materials Stocks.
2) Starbucks (NASDAQ:SBUX) caught a nice upgrade. Deutsche Bank (NYSE:DB) reiterated their “Buy” rating on the ubiquitous coffee chain, sending shares up 5% on the session. New single-serving partner Green Mountain Coffee Roasters (NASDAQ:GMCR) made new highs before traders took profits end of day. Now check out 10 More Top Stocks in John Paulson’s Portfolio.
3) Google, Bank of America, and Disney made headlines. In other news, Google (NASDAQ:GOOG) had their Google Books settlement ripped up on grounds it was “not fair, adequate and reasonable” to authors. The Federal Reserve said Bank of America (NYSE:BAC) cannot yet raise their dividend until they show more financial strength — looks like the bank will fall behind these companies which raised dividends. And, Steve Jobs was re-elected to Disney’s (NYSE:DIS) Board.
Now that you’re in the know, let’s see if Howard Stern will get his money from Sirius (NASDAQ:SIRI)!