U.S. stocks rallied, sending the major landmarks of heritage to their biggest gains in two weeks, as speculation grew that Ireland will accept a rescue plan to bail out the indebted banks and reports on manufacturing and jobless claims bolstered optimism about the economy.
Alcoa Inc. and Halliburton Co. rose 3.4 percent less than metal prices rose and crude oil rebounded from a fall four days. Caterpillar Inc. advanced 2.4 percent as the world's largest maker of construction equipment said worldwide retail sales of machines soared 48 percent. General Motors Co. rose 3.6 percent to its return to public trading after a 20 billion U.S. dollars initial public offering.
500 of Standard & Poor's rose 1.5 percent to 1,196.69 at 4 pm in New York. The Dow Jones Industrial Average added 173.35 points, or 1.6 percent, at 11,181.23.
"It seems that everyone wants a meeting today," said Jeffrey Davis, who oversees $ 5,000,000,000 as chief investment officer at Lee Munder Capital Group in Boston. "U.S. economic numbers have been very supportive. In addition, we are quite satisfied with how Europe is handling the situation in Ireland. And obviously IPO GM is keeping a positive tone with the thought of all. I'm encouraged. "
The S & P 500 fell by the largest amount in nearly three months on November 16 amid speculation that the debt crisis is worsening in Europe and China will take measures to slow its economy. The benchmark has still a leap of 17 percent since July 2 as the Federal Reserve increased its asset purchase program to stimulate growth.
World Rally
The MSCI World Index had its biggest gain since November 4 today as Ireland's bonds rose after central bank Governor Patrick Honohan said he expects Ireland to take a loan from the European Union and the International Monetary Fund worth " tens of thousands of millions "of euros. Irish Finance Minister Brian Lenihan said the government is willing to ask for a bank rescue package after the conclusion of negotiations with the EU and the IMF, which sent teams to Dublin today.
"Europe is a bit of entertainment to the U.S.," said Barry Knapp, chief equity strategist U.S. Barclays Plc in New York. "It would be a major problem if the data here weakened. That is not the case."
U.S. equity futures extended gains as the Labor Department figures showed that applications for unemployment insurance payments increased in 2000 to 439,000 in the week ended Nov. 13. The total number of people receiving unemployment insurance fell to its lowest level in two years, while the benefits are more widespread.
Manufacturing
The shares added to their advance after manufacturing in the Philadelphia region expanded in November at its fastest pace this year. The Federal Reserve Bank of Philadelphia's general economic index rose to 22.5, exceeding the most optimistic forecasts, a measure of 1 to the previous month. Readings greater than zero signal expansion. Another report showed that U.S. leading indicators index rose for a fourth term in October.
The shares of economically sensitive industries, metals and energy producers to manufacturers and technology industry, led gains in the S & P 500, meet at least 1.8 percent.
Commodities and global industry manufacturers gained the dollar fell, sending the Thomson Reuters / CRB Index of 19 commodities by 2.4 percent, its largest increase since 08 October.
Alcoa, the largest U.S. aluminum producer, rose 3.4 percent to $ 13.38. Halliburton, the global provider of oilfield services, the second largest, rallied 5.8 percent to $ 37.56.
Caterpillar 2.4 percent, to $ 83.11. General Electric Co., the world's largest maker of aircraft engines, turbines for power plants, medical imaging equipment and locomotives, gained 1.5 percent to $ 16.04.
'Healthy' Recruitment
GE Capital, a unit of Fairfield, the Connecticut-based conglomerate and one of the largest U.S. lenders to small and medium enterprises this year, according to a survey of CFOs found that the majority who are experiencing improved access to capital, low to moderate economic growth and "healthy" for recruiting.
"None of the CFOs expect a double dip, and 84 percent see steady improvement" in economic conditions, said Dan Henson, who oversees GE Capital in the Americas. "The outlook has improved. You have a moderate growth to a decent job."
GM, which was in bankruptcy last year after nearly a century in the New York Stock Exchange, rose 3.6 percent to $ 34.19 after climbing as high as $ 35.99. The owners of the automaker, including the U.S. Treasury sold 15.8 billion U.S. dollars of common stock at $ 33 each yesterday in the U.S. IPO second largest in history.
The offer of $ 4.35 billion of preferred stock and an over-allotment option could increase the total to $ 23.1 billion, up from $ 22,100,000,000 raised by Beijing-based Agricultural Bank of China Ltd., the largest initial public offering of shares of the story.
Applied Materials
Applied Materials Inc. added 2.2 percent to $ 12.65. The largest producer of chip manufacturing equipment said earnings more than triple that semiconductor manufacturers asked for more equipment. Net income for the fourth quarter rose to $ 468 million, or 35 cents a share, from 137.9 million U.S. dollars, or 10 cents, a year earlier. Analysts on average projected earnings of 31 cents and sales of $ 2.6 million.
NetApp, Inc. rose the most in the S & P 500, gaining 7.9 percent to $ 53.12. The third biggest seller of external storage systems, "said team in a conference call on Monday it expects to gain market share and is considering the repurchase of shares. The company also raised to "buy" from a "hold" Canaccord Genuity Inc.
"Groups of Leadership"
The S & P 500 has lost 3.9 percent from a maximum of two years on November 5 through Sunday, is unlikely to fall more than 8 percent of its 2010 high, said deGraaf Jeffrey ISI Group Inc. He said the trend of the stock market turned positive indicators last month as the time recorded on 3 September the best showing since March 2009. The historical trend of growing populations by the end of January, and the leadership of commodities, consumer and industrial companies during retirement, supporting a bullish outlook, he said.
"You want the public leadership that stands in the actions," said the head of technical analysis at ISI. "It's a dangerous time to fight in a strip of strong seasonality. So let's get a building - I do not think it's anything worse than 1130 - and then take another run at a new level."
The benchmark for options on U.S. stock fell the most since June 2. The VIX, as the Chicago Board Options Volatility Index is known, fell 14 percent to 18.75. The index, which measures the cost of using options to hedge against S & P 500 declines, has fallen by more than half since the peak of this year of 45.79 in May.
0 comments:
Post a Comment