Dow Jones: 12,076.18 (+123.21) S&P 500: 1,287.89 (+16.06) Nasdaq: 2,678.72 (+39.03)US STOCKS surged yesterday, sending the Standard and Poor's 500 index to its biggest gain in almost two months as higher-than-forecast Chinese industrial output and US retail sales eased concern about a global economic slowdown.
The S&P 500 climbed for a second day after sliding for six straight weeks and closing at an almost three-month low on June 10th.
“Investors have been looking for some positive news to encourage risk-taking, and we’re finally seeing a bit of that,” said Joseph Tanious, New York-based market strategist at JP Morgan Asset Management, which oversees $1.9 trillion in assets. “We’ve seen some bright spots in both China and the US today, which are helping drive this rally forward.”
The S&P 500’s gain was led by commodity producers, industrial and consumer companies, with all 10 of the main industry groups advancing.
Home Depot, Caterpillar and Boeing climbed at least 2.3 per cent to lead gains in 24 of 30 stocks in the Dow Jones Industrial Average.
Best Buy, the world’s largest consumer electronics retailer, rallied 4.6 per cent after reporting profit that exceeded analysts’ forecasts, helped by rising demand for smartphones and tablet computers.
JC Penney soared 17 per cent, the most in more than 10 years, after naming Ron Johnson, Apple’s retail head, as its chief executive officer.
McGraw-Hill gained 2.6 per cent to $41.79. The publisher and provider of financial data said it retained Morgan Stanley to pursue the divestiture of its broadcasting group.
Dollar Thrifty Automotive, the third biggest US car rental company, slumped 9.3 per cent to $72.43. Avis Budget Group, which has been bidding against Hertz Global Holdings for Dollar Thrifty, agreed to buy Avis Europe, the second biggest car-rental company on the continent. The announcement left investors wondering if Avis could buy both companies. Avis rose 7.6 per cent to $17.17, while Hertz rose 9.1 per cent to $15.40.
Kellogg fell 0.8 per cent to $54.96. The cereal maker was warned by US regulators after listeria was found in an inspection of a plant. – (Bloomberg/Reuters)
