Bulls on the Run Ahead of Fed Decision

Claman on Call: FBN’s Liz Claman with an after-hours web exclusive on the markets, oil prices and Valeant Pharmaceuticals shares’ boost from the company’s distribution deal with Walgreens.

The Dow was up as much as 259 points at the highs of the session Tuesday and closed up 157 points, marking its first two-day gain in two-and-a-half weeks. The S&P gained more than 21 points, marking its first back-to-back gain in six weeks. The Nasdaq closed up 43 points.

Energy names also got a boost, after oil bounced, bargain hunters decided Tuesday was the day to scoop up oil. It settled at $37.35, its highest in a week.

With less than 24 hours until the Fed releases its rate hike decision, the Fed fund futures pits were pricing in a 79% likelihood we will see the central bank tighten the screws and hike rates for the first time in 9.5 years.

Look who's getting swept up in the bull run: financials are on a tear. Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC) and Citigroup (NYSE:C) all saw gains for the day. Higher rates often mean better margins for banks and insurance companies

Consumer names felt green Tuesday, too. Stocks like McDonald's (NYSE:MCD), Kimberly Clark (NYSE:KMB), Dr. Pepper Snapple Group (NYSE:DPS) and Kroger (NYSE:KR) all soared to new highs Tuesday.

Valeant (NYSE:VRX) caught a break Tuesday. Shares surged 16% after the pharmaceutical giant inked a new pricing and distribution deal with Walgreens (NYSE:WAG), the biggest pharmacy chain in the U.S. This after Valeant severed ties with speciality pharmacy network Philidor because investors raised concerns. Valeant's stock is down more than 50% in the past three months.