Loading...
See More

Wall St rallies as global fears ebb

Apr 13 2012 08:24 Reuters

Related Articles

Wall St rises after five losing days

US stocks fall for fifth straight session

Stocks extend losing streak, euro falls

US, Libya probing oil firms - report

US stocks tumble after Spain debt auction

Fed sends Wall Street lower

 

New York - US stocks scored a second day of solid gains on Thursday, led by materials and energy stocks, as investors set aside weak figures on the domestic labour market.

Rumors about strong growth figures due overnight from China helped wash away some of the worries that hit stocks during a five-day streak of losses that ended with Wednesday's rebound.

Basic materials shares led gains as commodity prices advanced. The S&P materials sector index jumped 2.8%. US Steel gained 7.5% to $29.36. Freeport-McMoRan Copper & Gold rose 5.9% to $37.89 and an index of gold and silver miners' shares rose 3.7%.

"Growth in China is critical to the global recovery, and now it seems like the slowdown won't be as dramatic as initially feared," said Richard Weiss, a Mountain View, California-based senior money manager at American Century Investments, which has about $120bn in assets under management.

The rebound pushed the S&P 500 back above its 50-day moving average, a sign that traders may see the recent pullback of more than 4% as an opportunity to catch up with the benchmark's gains. The index is up more than 10% in 2012.

Concerns about the eurozone's debt crisis were eased by lower Italian bond yields.

Benchmark bond yields in Italy and Spain dropped following solid demand at this week's Italian debt auctions, while the euro hit a one-week high against the US dollar, indicating a reduction in near-term concern about the eurozone's debt troubles.

In a sign that the US labour market's recovery may be stalling, government data showed new US claims for unemployment benefits rose unexpectedly last week to their highest level since late January. But some economists cited the Easter holidays for the spike in claims, adding that they expected applications will keep declining in the weeks ahead.

Google Inc shares rose 1% to $657.67 in extended trading after the company reported its quarterly results and announced a proposal to effectively implement a 2-for-1 stock split.

The Dow Jones industrial average jumped 181.19 points, to end at 12 986.58. The Standard & Poor's 500 Index gained 18.86 points, to 1 387.57. The Nasdaq Composite Index climbed 39.09 points, to 3 055.55.

After the bell, shares of Dow Chemical Co rose 1.8% to $33.25 after the company boosted its quarterly dividend by 28% and forecast earnings growth for the foreseeable future.

Early into earnings season, results are beating Wall Street's expectations at a fast clip. Analysts say the expectations could have been lowered too much and stocks can seem cheap after the S&P's recent pullback of over 4%.

"Earnings so far have been better than expected, and that reinforces the view that forecasts had gotten too pessimistic," said David Joy, chief market strategist at Ameriprise Financial in Boston, where he helps oversee $571bn in assets under management.

"We have a pretty good track record going, though it's still early in the season. Expectations had been revised significantly lower, but now they're stabilising, and I think there's a chance we could exceed them."

The KBW bank index jumped 2% during Thursday's regular session, a day ahead of earnings due from JP Morgan Chase & Co and Wells Fargo & Co JP Morgan's stock climbed 1.9% to $44.84, while Wells Fargo's shares added 1.2% to $34.02.

Shares of tech bellwether Hewlett-Packard Co surged 7.2% to $25.09 as first-quarter personal computer shipments unexpectedly rose, according to research firm Gartner.

The US Federal Reserve is running through data to determine if last month's soft non-farm payrolls report was a weather-related setback or a sign the recovery is losing momentum, said William Dudley, president of the Federal Reserve Bank of New York.

Dudley left the door open to additional stimulus measures if the economic recovery gets off track. Previous rounds of quantitative easing have given a boost to equities and other risk assets.

Almost four-fifths of companies traded on the New York Stock Exchange closed higher while 71% of Nasdaq-listed shares ended in positive territory.

Volume was light, with about 6.14 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 7.84 billion.

wall street  |  markets
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 
 

Hottie of the day: Charlotte

Meet our hottie of the day, Charlotte. She feels sexiest after a good workout at the gym!

 
 

Men24.com

This is why guys shouldn’t be in photos
BMW drift battle: M235i vs. speedway bike
Want to start talking dirty?
And this year's Miss Bumbum title goes to...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...