Why the Dow's Breaking Out Today

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Investors pushed the stock market up sharply as retail sales grew at the fastest pace in five months, raising hopes that overall economic growth could end up better than expected. Still, with the Federal Reserve announcing its latest moves in monetary policy later this afternoon, there's potential for a reversal if the news doesn't match what bullish investors want to see. For now, though, the Dow Jones Industrials (INDEX: ^DJI  ) are up 112 points at 13,071 as of 1:45 p.m. EDT, while the S&P 500 is up 12 points to 1,383.

All but two stocks in the Dow traded higher, with economically sensitive stocks putting in the best performance. Alcoa (NYSE: AA  ) was up more than 3%, partially in response to an internal dispute involving RUSAL, the world's largest aluminum company. After a long feud with CEO and controlling shareholder Oleg Deripaska, RUSAL board chairman Viktor Vekselberg gave up his leadership role today, citing the company's huge debts as causing a crisis situation. The discord could prove problematic for Alcoa in the short term, but in the long run, it could give the U.S. aluminum giant an opening to boost its global position.

Among financials, JPMorgan Chase (NYSE: JPM  ) and Bank of America (NYSE: BAC  ) were both up around 2%. In addition to benefiting from greater economic stability, the companies also stand to gain from their foreclosure settlement with state and federal governments, which was formally filed in federal court yesterday. With new details of the deal released this week, critics argue that the impact will be minimal compared to the scope of the overall mortgage crisis.

Finally, Pfizer (NYSE: PFE  ) rose 1.8% despite reports that it was giving up on a deal with Indian biotech Biocon to sell insulin products. The move is just the latest in a series of actions that Pfizer has taken to try to refocus the drug giant on its core business.

Enjoy the day
Positive days for the Dow are fun for investors who own shares. But not all stocks will soar in the long run. Learn about the one stock the Fool's chief investment officer picked to crush the market in this free report: "The Motley Fool's Top Stock for 2012." Instant access is just a click away.

Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter here. The Motley Fool owns shares of JPMorgan Chase and Bank of America. Motley Fool newsletter services have recommended buying shares of Pfizer. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (13)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1814657, ~/Articles/ArticleHandler.aspx, 10/27/2016 7:10:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,199.33 30.06 0.17%
S&P 500 2,139.43 -3.73 -0.17%
NASD 5,250.27 -33.13 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/26/2016 4:39 PM
^DJI $18199.33 Up +30.06 +0.17%
AA $27.79 Up +0.50 +1.83%
Alcoa CAPS Rating: ***
BAC $16.87 Up +0.15 +0.90%
Bank of America CAPS Rating: ****
JPM $69.13 Up +0.33 +0.48%
JPMorgan Chase CAPS Rating: ****
PFE $32.40 Up +0.12 +0.37%
Pfizer CAPS Rating: ****