Wall Street rallies on European summit hopes
October 27th, 2011 - 6:37 am ICT by IANSNew York, Oct 27 (IANS) Wall Street rose Wednesday, with the blue-chip Dow and the broader S&P; 500 up in four of last five sessions, as investors were expecting a comprehensive resolution to euro zone’s debt problems at the EU sumit, Xinhua reported.
The Dow Jones industrial average gained 162.42 points, or 1.39 percent, to 11,869.04. The Standard & Poor’s 500 rose 12.95 points, or 1.05 percent, to 1,242.00. The Nasdaq Composite Index added 12. 25 points, or 0.46 percent, to 2,650.67.
As the European leaders are meeting in Brussels, trying to achieve a definitive solution to the region’s debt woes, news from Europe still set the tone for the US market.
Encouragingly, German lawmakers voted 503 to 89 with four abstentions in favor of leveraging the European bailout fund to make it more effective, which is believed to add to the chance for EU leaders to seal a deal during the meeting.
Stocks got a lift in afternoon trading, pushing major indexes to session highs, after a report said China has agreed to invest in Europe’s bailout fund.
With more and more details revealed about the possible plan, the gains in equities hold to the last minute.
According to headlines coming from Europe, European leaders intended to multiply their rescue fund fourfold to one trillion euros and press Greece’s creditors to accept losses of over 50 percent on their bond holdings, but the details of their plan to end the debt crisis are still not fully formed.
Wednesday’s positive economic data added to the gains in the market. According to the Commerce Department, demand for long-lasting manufactured goods recorded their largest gain in six months in September, suggesting the US economy was gaining some momentum.
Data showed that durable goods orders excluding transportation component rose 1.7 percent after falling by a revised 0.4 percent in August, much bigger than the 0.4 percent rise anticipated by the market.
Meanwhile, a separate report showed sales of new homes rose in September after four straight monthly declines.
Among stocks in focus, Boeing jumped nearly 4.5 percent after the aircraft maker reported better-than-expected quarterly results while Amazon slumped more than 12 percent after the online retailer cut its forecasts for the quarter.
- US stocks mixed as investors await Greek deal - Feb 18, 2012
- US stocks higher on housing report - Feb 28, 2012
- US stocks close mixed - Mar 31, 2012
- Wall Street ends mixed despite EU optimism - Nov 30, 2011
- US stocks edge higher amid Greek hope (Lead) - Feb 10, 2012
- US stocks edge lower - Jan 25, 2012
- US stocks rebound on strong Alcoa earnings - Apr 12, 2012
- US stocks rebound on strong Alcoa earnings - Apr 12, 2012
- US stocks edge mixed (Lead) - Jan 25, 2012
- US stocks flat as Europe debt fears linger (Lead) - Feb 28, 2012
- US stocks end mixed, Europe still in focus (Lead) - Oct 21, 2011
- Sensex gives up gains, traders book profits - Oct 11, 2011
- Wall Street up on European hopes, bank rally - Oct 19, 2011
- Infosys results help Sensex close 421 points higher - Oct 12, 2011
- Wall Street flat as investors weigh US data, Europe - Jan 05, 2012
Tags: bailout, bond holdings, commerce department, debt crisis, debt problems, debt woes, definitive solution, dow jones, dow jones industrial, dow jones industrial average, durable goods orders, euro zone, european leaders, european summit, german lawmakers, nasdaq composite index, sumit, transportation component, wall street rallies, xinhua