Wall Street Rallies as Domestic and Global Economic Data Favors Buying

Investors on Wall Street took heart in economic data on Tuesday, putting a stop to two straight sessions of heavy selling by the closing bell as stocks rallied across the board.

The street kept in mind the relatively brutal US winter season, and was unflinching at the Department of Commerce’s new home sales report for the month of February that indicated contracts to buy new homes during the period were off by 3.3 percent. Meanwhile, there were bright spots in the form of the Conference Board’s index of consumer conference that showed a reading of 82.3 for the month of March, a significant jump from the previous month’s 78.3, and well ahead of forecasts for a reading of 78.5.

On the international scene, succor came from financial giant Morgan Stanley (MS) , who reiterated its buy recommendation on Chinese stocks, and was flatly dismissive of the growing consensus that the world’s most populous nation and economic lynch-pin would enter a downturn significant enough to disrupt global markets.

Results for Tuesday, March 25

?       Standard & Poor’s 500: +0.44 percent to 1,865.62

?       Dow Jones Industrial Average: +0.56 percent to 16,367.88

?       NASDAQ: +0.19 percent to 4,234.27

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On the Exchanges

?       After announcing a deal to issue 2 million shares of common stock, plucky little biofuel outfit MagneGas Corporation (MNGA) wiped out much of the astronomical gains made over the past few sessions, with shares down nearly 30 percent by the close.

?       Russian ETFs rallied higher again, despite the announcement that the former Soviet Union had been given a time-out from the group of eight industrial nations.

?       Equities.com Small-Cap Star Shenandoah Telecommunications (SHEN) dropped over one percent by the closing bell, though Senior Editor Joel Andersonsees a lot to like in the stock’s 2014 performance so far.

?       Small-cap medical test-maker BG Medicine (BGMD) hit a new 52-week high after the American Heart Journal published results that were achieved using one of its Galectin-3 tests.

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