Wall Street presented another rocky session yesterday, but closed the day with further gains. The session started with a strong rally higher, backed by overall momentum and the fact that MBA mortgage Applications in the U.S showed a much stronger than expected figure of 17%. Even though the day started off on a positive note, the Fed’s Beige Book disappointed certain investors, sending the indices into selling mode. While the book mentioned that most of the 12 districts are now showing a dramatic improvement and economic stability, led by a pickup in factory activity and a slight improvement in residential real estate, consumer spending continued to weigh on sentiment. As mentioned in previous reports many investors now fear that the recent rally in stocks is being backed by government spending rather than individual consumer spending.

The financial sector presented a 1.53% gain, led by AIG and Capital One. The industrial sector also presented a nice increase, closing the session with a gain of 1.68%. The broader market finished the session with a nice turnaround closing higher by 0.78%. One must note that the S&P500 is now trading around major resistance, after presenting a four day rally.

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