Heritage Finds Leaders In Its Midcap Arena and Stocks Climb, As Higher Volume Bolsters Advance

That stands in the top 1% of its midgrowth rivals, which averaged 1.41%, according to Morningstar Inc. The S&P 500 averaged 0.18%.

Over the past 12 months the fund’s average annual gain was 36.11% vs. 39.67% for its peers and 33.14% for the S&P 500.

Relative price strength is one of the key tools in the kit used by managers Greg Walsh and David Hollond. They also like to find companies benefiting from larger economic or demographic trends.

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The managers recently discussed their investment approach with IBD from their quarters in Kansas City, Mo.

Hollond: From our perspective, nothing much changes. We’re trying to find companies seeing improvement in the economy. So economic recovery is one of the themes we’re playing. [Read the full article]

The Reuters-Jefferies CRB index, which tracks 19 mostly U.S.-traded futures markets, settled up 1.95% — the most it had gained in a day since rising 2.1% on Jan. 4.

Most other markets, including gold, copper, soybeans and wheat, were up too, with cocoa being a notable exception.

Traders said investors, emboldened by bullish data this week, have returned to commodity markets, which had sold off sharply in recent weeks.

“We’re having some more encouraging economic data coming through,” said Gayle Berry, an analyst at Barclays Capital.

“The pieces of the jigsaw do seem to be falling into place to suggest that we will see a recovery in (developed-world) demand begin to pick up pace over the first half of this year,” Berry said.

And the short-selling pressure that pushed markets such as copper to 2 1/2-month lows this week could disappear if investors sense a broader-based rebound around the corner, analysts said. [Read the full article]

The Treasury market was trading in a tight range with light volume as investors braced for the Treasury Department’s Wednesday announcement on next week’s re-funding auction and the Labor Department’s January payroll figures due Friday.

“The market is really in a holding pattern,” said Stuart Spodek, co-head of U.S. fixed income at the BlackRock Fixed Income Portfolio Group.

The benchmark 10-year note’s yield was 3.64%, down from 3.65% late Monday. The 30-year bond was 5/32 higher in price for a yield of 4.56%, down from 4.57% late Monday.

Wall Street stocks rose on strong earnings reports, with the S&P 500 index up for a second straight day. The Dow finished up more than 1%.

Traders said corporate bond deals were contributing to some of the demand for Treasuries on Tuesday.

“There’s some corporate deals that are pricing today that are being swapped,” said Rick Klingman, managing director of Treasuries trading at BNP Paribas. [Read the full article]

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