Dow up 107 as rally continues
The blue chips see their best 2-day gains since September after a report on pending home sales surprises. Retailers report decent November sales. Gold briefly nears $1,400. Krispy Kreme shares soar.
One of the biggest questions after Wednesday's big rally was if it had enough strength to continue.
It had plenty of strength today, thanks to a stronger-than-expected report on pending home sales and decent reports on retailers' November sales. The report was another bit of evidence that the economic recovery is gaining strength. Another signal of strength: Crude oil hit a 2-year high.
Today's rally also built on gains in Europe as the European Central Bank extended an emergency loan program. Stocks rose sharply in Britain, Germany and Spain. The dollar fell, and gold came very close to reaching $1,400 an ounce.
Dow Jones industrials ($INDU) closed up 107 points, or 1%, to 11,362. The Standard & Poor's 500 Index ($INX) jumped 15 points, or 1.3%, to 1,222, and the Nasdaq Composite Index ($COMPX) added 30 points, or 1.2%, to 2,579.
The Dow's two-day gain of about 356 points was its best two-day performance since a 382-point gain over Aug. 31 and Sept. 1. The streak looks like it will be tested on Friday. Futures trading suggests stocks will open slightly lower.
The market's gain also pushed commodity prices higher, and bond yields rose as stocks pulled money away from bonds.
Gold for February delivery settled up $1 to $1,389.30 an ounce, after rising to as much as $1,399.70.
Crude oil settled at $88 a barrel, up $1.25 from Wednesday and its highest close since Oct. 8, 2008. Crude is up nearly 10% since the end of September and nearly 11% on the year.
The 10-year Treasury ended the day at 3%, its first close at 3% or higher since July.
The dollar was lower against the euro, the Japanese yen and the Canadian dollar.
The market was led by financial stocks after Goldman Sachs raised its rating on them to "overweight" and predicted a 20% rally in the S&P 500 by the end of next year as the economy improves.
JPMorgan Chase (JPM), Citigroup (C) and Bank of America (BAC) were listed among Goldman's "top ideas," Bloomberg News said. JPMorgan was up 3% to $39.31. Bank of America added 3.5% to $11.68, and Citigroup rose 2.8% to $4.42. Wells Fargo (WFC) added 4.5% to $28.78.
Also stronger were homebuilding, steel and commodity stocks.
Home Depot (HD) was the Dow leader, up 5.5% to $33.36, followed by Bank of America. Freeport-McMoRan Copper & Gold (FCX) added 2% to $107.64, thanks to higher gold and copper prices.
And remember Krispy Kreme (KKD), once one of the hottest stocks around? Shares were up 20.8% to $7.44 today -- after hitting a 52-week high of $7.47. The company reported an 8% revenue gain to $90.2 million. Analysts had expected $88.6 million. Earnings were $2.4 million, or 3 cents a share; analysts had expected a loss of a penny a share.
|Energy prices -- New York close|
|Thur.||Wed.||Month chg.||YTD chg.|
|(per mil. BTU)|
|(per gallon; AAA)|
Pending home sales surprise
Pending sales of U.S. existing houses unexpectedly jumped by a record 10% in October, indicating the industry at the center of the last recession is stabilizing as the job market improves.
The increase in the number of Americans signing contracts to buy previously owned homes followed a 1.8% drop in September, the National Association of Realtors said today.
Combined with figures showing chain-store sales topped estimates last month, the reports added to evidence the world’s largest economy is strengthening.
Cheaper borrowing costs, lower prices and more jobs may entice homebuyers in coming months, helping the real-estate market regain its footing after the end of a tax credit caused demand to slump.
The report pushed homebuilding shares higher. Pultegroup (PHM) was up 3.2% to $6.75. Ryland (RYL) added 5.1% to $15.81. The Philadelphia Housing Sector Index ($HGX) was up 2.7% to 102.
Retailers see sales gains in November
In another bit of evidence that the recovery is looking stronger, retailers generally reported sales gains in November that beat Street estimates.
The gains didn't necessarily boost stock prices, except in one spectacular case. Abercrombie & Fitch (ANF) sales were up 22%, compared with consensus estimate of a 6.4% gain. The stock was up 11.1% to $56.02, tops among S&P 500 stocks.
Companies also beating Street estimates included Limited Brands (LTD), a 10% sales gain; Target (TGT), up 5.5%; Macy's (M), up 6.1%; and Nordstrom (JWN), up 5.1%.
Surprisingly, Macy's shares were off 1% to $25.54. Nordstrom was off 3% to $42.14.
|Short hits from the markets -- New York close|
|Tues.||Mon.||Month chg.||YTD chg.|
|13-week Treasury bill||0.150%||0.160%||-6.25%||200.00%|
|5-year Treasury note||1.675%||1.622%||14.41%||-37.64%|
|10-year Treasury note||3.000%||2.964%||7.26%||-21.94%|
|30-year Treasury bond||4.266%||4.237%||4.00%||-8.08%|
|U.S. Dollar Index||80.336||80.762||-1.15%||2.71%|
|(in U.S. $)|
|U.S. $ in pounds||£0.640||£0.640||-0.30%||3.59%|
|Euro in dollars||$1.323||$1.313||1.83%||-7.70%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.756||€ 0.762||-1.79%||8.34%|
|U.S. $ in yen||84.034||84.150||0.25%||-9.64%|
|U.S. $ in Chinese||6.688||6.659||-0.10%||-2.03%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
Lets see- the Fed announces "quantitative easing" which is Fed speak for inflation , the same slight of hand trick that was used in 2009 to inflate stock prices. Your stocks have not gone up in value, it just takes more increasingly worthless dollars to buy the same stock. Allow me to give a simple example so even folks with limited mental capacity like USA ONE can understand this. Say for instance that in 1965 you
purchased a 1000 sq. ft. home for $35,000 and sold it
in 2000 for $200,000. Your home did not go up in value during that time, the value stayed the same.
It took an additional $165,000 to buy it because the purchasing power of the dollar fell by that amount during that time frame. Those same dynamics are what is driving equity prices up now.
The economy if anything is worse than most people believe. The stock market is only one segment of the economy, and a couple of consecutive up days hardly constitutes a recovery.
Check out trends on Dow over last year. At least 5 times this year market has gone up 5 to 10% only to retreat each time. These guys on wall street continue to use fear to short shares. Than they buy back your shares and mine. They continue short than buy back after taking market down 5% to 10% each time. Doing a little math here, they get returns between 25% and 50% this year alone. What happen to investing in companies for long term. The stock market is a casino for rich who continue to pray on working people. With fed bailout of 600 billion this year, they know the stocks have to continue to go up. But when markets get up between 5 and 10% bad news and fear start all over again. They will continue to de-value the dollar making every thing we buy higher. I be willing bet that at 11,750 to 11,800 we will have another 5% to 10% pull back again. Where is SEC on this. Market needs some to over see this crap. In last 20 years 401 accounts were setup to help workers so they could retire. Instead these casino players have figure out how to take your hard earned money. At same time blaming us for not saving enough.
It is so geat that the marketis up and that the GOP league are back making money...that is what this materialistic society is all about....The GOP got rid of extended unemployment....now if they can get the minimum wage down to 10 cents an hour, the wealthy can help create jobs.
Hope everybody enjoys the higher gas pump prices, wait till you get your heating bills.
Go Fox news......let the poor eat cake
Can any of the pro-illegal-immigrant crowd please explain how this is acceptable in America? Innocent children being trafficked! Innocent children being used as tools for extortion! Innocent children being placed in a dangerous situation because their parents choose to hire unscrupulous people to bring their children into America Illegally!
What kind of America are we creating when we consider reuniting the most vulnerable in any society with family that will place their own in such dangerous and criminal hands in an attempt to break laws putting their babies at risk?
All involved, from those who paid the traffickers to the traffickers themselves should be charged with felony criminal offenses and the children should be returned to their home country officials to be raised with some sort of reasonable care.
President Caldaron, President Funes and President Santos....Are you ready to make your houses a little bigger to include children who have been tossed aside by your own people?” Discuss: Phoenix cops: 11 smuggled kids found at house
Suspects allegedly tried to extort money from some parents, threatening sexual assault
Phoenix cops: 11 smuggled kids found at house
the moral of the story is: you can not keep giving aid to criminals as criminals will rule your day! starting early uh huh
I see what you are saying.
Well, then don't get a job that you wait on rich people. Salvation Army needs bell ringers right now.
I read yesterday that there are 2.7 million people in the US with over $1 million in assets. I thought "wow" 2.7 million people are middle class.
i tried reporting you with the 'report' tab but it has nothing there for people who actually get it and still get nothing; sorry!!
msn money for DUMMIES: tomorrow is friday and what bad news will they write about to spout off why the market just lost everything it gained the past two day's!
sure hope iraq doesn't see the piece on rangel as that just goes to prove what kind of a democracy they paid a huge price for.....MHO 'what an 'F'ing joke that f can't be big enough to say what joke it truely really is!!
that just gives me another reason for downing a few of these
Then just sit on welfare/unemployment. Wait for the end of the world. It's only two years away anyway. Maybe unemployment will last that long.
Collect your food stamps. Sit on your a$$ and watch the ball game.
Then maybe you will be contributing to society.
Could not disagree with you more. The market is made up of millions of people making their choices all the time. You really believe this is manipulated?
How bout a thought that this is a random walk, and we can't predict the future?
Still buying GLD and SLV.
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- The dollar index sold off this morning, which gave a boost to the precious metals space
- Both gold and silver rallied about an hour ago... gold rallied $23/oz to $1299/oz in 10 minutes
- In current trade, June gold is +0.4% at $1289.30/oz, while May silver is +1.2% at $19.67/oz
- Natural gas has been in positive territory all day so far and was modestly higher just ahead of inventory data
- Following the data, nat gas dropped, but quickly recovered ... More
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