June 17 - Summary: Stocks rally but finish below the peak with investors jittery about this week’s Fed meeting; homebuilder sentiment back to pre-crisis levels; Warner Bros. sees super box office from Man of Steel; Netflix and DreamWorks sign exclusive content deal. Conway G. Gittens reports.
The Dow has its fifth triple-digit move in five sessions, but this time it was to the upside. Blue chips jumped 109 points, the S&P 500 rose 12 and the Nasdaq bounced 28 points. Fueling the rally: hopes that Federal Reserve Chairman Ben Bernanke will use this week's press conference to temper fears he is close to scaling back the Fed's historic stimulus efforts. But in a sign investors are jittery, markets gyrated after a media report suggested the Fed is close to tapping on the brakes. Homebuilders, however, are more certain of their standing. Sentiment among the group rose to its highest than any time since the start of the housing crisis back in 2007. Peter Flint, CEO of real estate website Trulia, says an early rebound doesn't mean a bubble is forming. SOUNDBITE: PETER FLINT, CEO, TRULIA (ENGLISH) SAYING: "You've seen listed prices - 10 percent growth. You are also seeing on the home builder side, new home starts and home builders confidence data from this morning is at seven-year high. So you see from both, residential real estate, prices tick up, new home starts prices tick up. The kind of negative side, which means we are not going to get into bubble territory anytime soon, is that there is not much inventory." It was positive day for media. According to preliminary figures for the weekend, Man of Steel flew into the record books. The Warner Bros. Superman reboot saw the best domestic opening for June and the second best debut of the year. Shares of parent company Time Warner only taking a small leap on those box office receipts. Netflix continues to spend to boost original programming. This time it has inked a deal with DreamWorks Animation - to get exclusive content for kids, which will be available next year. Netflix and DreamWorks both rallying on the deal. Financial terms were not disclosed. Activist investor Starboard wants to break Smithfield Foods into three parts rather than see the world's biggest pork producer sold to China's Shuanghui International for $4.7 billion. Judging from the stock: investors think the original deal will go through. In Europe - leaders of the world's eight big economies - meeting to discuss the global economy and taxes but Syria is stealing the spotlight. As for the markets - up finishes in Germany, France, and the U.K.