The major average closed off session highs but still finished firmly in positive territory on Tuesday. The Dow was up as many as 218 points before ending with a 106 point gain at 15,409. The S&P 500 added 10 points to 1,660. The Nasdaq Composite advanced 30 points to 3,488. The major averages rebounded from last week's retreat after investors received encouraging updates on the U.S. economy. Stocks rose after reports showed home prices increased the most in seven years in March and consumer confidence unexpectedly strengthened in May to its best level since February 2008.

On the earnings front, Tiffany & Co (TIF +3.95%) rallied following its better-than-expected quarterly results. Health care was the best performing sector on the session. Shares of Valeant Pharmaceuticals (VRX +8.7%) spiked higher after the Canadian drug maker agreed to purchase privately-held eye care company Bausch & Lomb for $8.7 billion. Bank stocks paced financials higher after Moody's Inc (MCO +0.57%) upgraded its outlook for the industry. Citigroup Inc (C +2.50%) and JP Morgan Chase & Co (JPM +1.75%) were higher. Utilities underperformed with Exelon Corp (EXC -7.53%) down considerably. Energy also outperformed with Exxon (XOM +0.93%) edging higher.

Treasuries fell sharply with the 10-year note declining a point and 15/32 to yield 2.17%.

The market (M criteria) uptrend has lifted the Dow Jones Industrial Average and the S&P 500 Index to new record highs. The indices' rally to new highs confirmed the market's uptrend which means odds are favorable for new buying efforts in stocks meeting all of the fact-based investment system's key criteria. Action-worthy leaders best matching the winning models are covered on an ongoing basis on the Featured Stocks Page - including our Certified experts' latest notes and links to additional resources including detailed analysis with annotated graphs.  

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PICTURED: The Dow Jones Industrial Average finished at a best-ever close on Tuesday with a gain on higher (near average) volume.

Nationstar Mtg Hldgs Inc (NSM -$0.39 or -0.93% to $41.50) has shown resilience near prior highs, but today it tallied its 5th consecutive loss with above average volume. It was previously noted that prior chart highs define initial chart support above its 50-day moving average (DMA) line (now $37.46). Disciplined investors alway limit losses by selling any stock that falls more than -7% from their purchase price. Any more damaging losses could raise more serious concerns and trigger more worrisome sell signals.

Nationstar clinched a technical buy signal while tallying a streak of volume-driven gains after its last appearance in this FSU section with an annotated graph on 5/07/13 under the headline, "Forming New Base and Fundamentals Remain Strong". It had been highlighted in yellow with pivot point cited based on its 2/15/13 high plus 10 cents in the 5/07/13 mid-day report (read here) while noted - "Its fundamentals remain favorable with respect to the C and A criteria. Today it gapped up nearly challenging its 52-week high and previously stubborn resistance in the $41-42 area with a considerable volume-driven gain. It still faces some resistance due to overhead supply.  Disciplined investors will watch for convincing proof of fresh institutional buying demand to trigger a new technical buy signal before taking action."

It reported strong earnings and sales increases for the Mar '13 quarter well above the +25% minimum guideline (C criteria), continuing its strong earnings growth history. The Finance - Mortgage Related Services group has a Group Relative Strength Rating of B-, and leadership from at least one other high-ranked company in the group is a reassuring sign concerning the L criteria. NSM has attracted increasing ownership interest from top-rated funds, rising from 119 funds in Jun '12 to 207 in Mar '13, a reassuring sign concerning the I criteria.

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.