The market surged today,as the Fed announced more stimulus. The Dow (INDEX: ^DJI ) was up 1.6%, the S&P 500 (INDEX: ^GSPC ) was also up 1.6%, and the Nasdaq (INDEX: ^IXIC ) was up 1.3%. On most days, the individual stock stories are more interesting than the macro events, but today, a rising Fed tide lifted most of the boats. With that as context, let's look at the stocks that everybody was talking about.
Every one of the Dow's 30 components wasup today, and the banks led the charge. Bank of America was up 4.8%,to close at $9.40, and JPMorgan was up 3.7%,to close at $41.40. As the motor oil lubricating commerce, the banks are obvious beneficiaries of any efforts to boost the economy. And the nation's central bank attempting to do so, by buying mortgage-backed securities (which banks tend to own a lot of),is doubly so.
Another sector rallying mightily today was mining. In the S&P 500, Alpha Natural Resources (NYSE: ANR ) , Cliffs Natural Resources (NYSE: CLF ) , Newmont Mining, and Titanium Metals were up 12.1%, 6.3%, 5.5%, and 4.8%, respectively. The only mining Dow member, Alcoa, gained 3%,as well. We see this a lot. When the market moves on economic news, banking and natural resources stocks tend to move even more. If banks lubricate the economy, mining companies literally provide the raw material for its growth.
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