According to Kate Gibson of MarketWatch, U.S. stocks rose Tuesday for a second day as dour data on the U.S. housing market failed to offset cheer that came with more upbeat manufacturing reports from Europe and China.
“It’s very hard for investors to not surrender to becoming traders, to hear the ‘stay the course’ story,” said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. “With all this volatility, you have to wonder how much is hedge-fund related or high-frequency trading related.”
Stocks added to their gains after the release of data showing a weaker-than-expected housing market, with sales of new
single-family homes sliding to a five-month low in July.
One school of thought had the disappointing economic data serving to ramp up expectations of another round of quantitative easing by the Federal Reserve, with Fed Chairman Ben Bernanke speaking at a gathering in Jackson Hole, Wyo., on Friday.