It’s too early to tell if today’s nice jump for the Dow Jones Industrial Average (INDEXDJX:.DJI) will prove to be another example of the bull market’s resilience or just a small bounce in what could become a larger pullback for the soaring average. But the 158-point gain recovered more than half of the Dow’s losses from yesterday, as positive news on the earnings front and signs that consumer prices remain firmly under control gave investors some comfort that the economy can still push ahead from here. Broader averages rose even more sharply, with gains of almost 1.5% on the day for the S&P 500.
Elsewhere, losers were few and far between, but many gold stocks remained under pressure as the yellow metal only managed a modest bounce after yesterday’s plunge. In particular, major producer Barrick Gold Corporation (USA) (NYSE:ABX) and gold miner IAMGOLD Corporation (USA) (NYSE:IAG) fell between 4% and 5%. Both companies were on the list of holdings of billionaire hedge fund investor John Paulson’s gold fund as of Dec. 31, and with rumors circulating that Paulson may have to liquidate positions to handle coming redemption requests, the stocks that he reportedly owns could see further selling pressure even if gold bullion prices rise.
The article Why the Dow’s Telecoms Missed the Market’s Party originally appeared on Fool.com.
Fool contributor Dan Caplinger has no position in any stocks mentioned, and neither does The Motley Fool. You can follow Dan on Twitter @DanCaplinger.
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