Stocks showed some resilience Tuesday, erasing losses in the afternoon to finish higher amid faster turnover. The Nasdaq added 1.1%, the S&P 500 0.5% and the NYSE composite 0.2%. Volume increased on both major exchanges from Monday's anemic levels.
Stocks rallied on news that Mario Monti, prime minister-designate for debt-wracked Italy, had scored broad support and agreement on cutbacks, and that he's ready to present his new government Wednesday.
U.S. economic news also provided a boost to the market. October retail sales and the New York Fed's manufacturing index both bested forecasts. The producer price index fell more than expected, suggesting the Fed could have more room for easing.
The Nasdaq closed just below its 200-day moving average. It's been struggling to hold over that level in the prior three weeks, falling back below the line four times but finding support at the 2600 level.
It's been a similar story for the S&P 500, which closed under its 200-day line Tuesday. The S&P 500 has been finding support near the 1220 to 1230 level, but meeting resistance at its 200-day average.
In other words, it's about what you would expect for a market uptrend that's under pressure.
Despite Tuesday's gains, Nasdaq stocks making new lows outnumbered those making new highs. NYSE new highs topped new lows, though.
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