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US stocks slightly higher, extending rally

US stocks slightly higher, extending rally

Investors were trying to turn Wall Street's best performance this year into a two-day advance.
Financial stocks that led the market higher in Tuesday's huge rally were mostly higher and underpinning the day's overall gains. Tech stocks also rose after an analyst raised Hewlett-Packard Co.'s rating.
Analysts were again cautioning that the market remains deeply troubled by the ongoing problems in the banking industry and the impact of the recession on companies in all industries.
"It's rare to see large gains follow large gains," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "What we would find encouraging is getting a bounce that holds. That would suggest that we may be at the beginning of a rebound."
Investors bought stocks furiously Tuesday, sending the Dow Jones industrials up nearly 380 points, on news that Citigroup Inc. was operating at a profit. But there was little economic and corporate news expected Wednesday that could help influence the market.
"To a certain extent, the market's on its own," Gayle said.
Tuesday's advance was also fed by short covering, which occurs when investors need to buy stock to replace shares that were borrowed and then sold on expectations of a market decline. Analysts said short covering was likely a factor in the market's gains again on Wednesday.
In midday trading, the Dow rose 29.55, or 0.4 percent, to 6,956.04. The Standard & Poor's 500 index added 4.72, or 0.7 percent, to 724.32, while the Nasdaq composite index, which has a heavy representation of tech stocks, rose 12.77, or 0.9 percent, to 1,371.05.


Updated : 2021-06-14 05:36 GMT+08:00