Dow Jones: 12,188.69 (+145.13) Nasdaq: 2,927.31 (+41.03) SP 500: 1,296.67 (+16.57):US STOCKS rose yesterday, amid optimism that European nations will take action to prevent a Greek default and after Nike beat estimates.
Nike rallied 10 per cent as higher North American sales helped the world’s largest sporting-goods company top earnings projections.
Caterpillar, Exxon Mobil and Alcoa added at least 2.1 per cent, pacing gains in companies most tied to economic growth.
Home Depot climbed 2.4 per cent after the largest US home improvement retailer said that it is targeting about $3.5 billion in share repurchases for 2011.
The Dow Jones industrial average gained 145.13 points, or 1.21 per cent, to 12,188.69.
The Standard Poor’s 500 Index rose 16.57 points, or 1.29 per cent, to 1,296.67.
The Nasdaq Composite Index increased 41.03 points, or 1.53 per cent, to 2,729.31.
Halliburton gained 5.3 per cent to $48.69, while Chevron was up 1.5 per cent at $100.35.
“The rally is a continuation of the global growth story,” said Sean Kraus, chief investment officer at Citizens Business Bank in Pasadena, California.
“There’s relief around Greece. As a global company, people looked at Nike to say, ‘hey, how was the global economy really doing on the consumer side?’ Because Nike actually had a very good quarter, that was a surprise to the market,” he said.
Global stocks rallied yesterday as Germany’s biggest banks and insurers meet with the Finance Ministry in Berlin today as they seek to reach an agreement on their contribution to a Greek aid package, Bloomberg News was told.
German and French lenders are the biggest European holders of Greek debt and their participation in the plan is key to the European Union goal of getting banks to roll over at least €30 billion of bonds.
The debt swap is part of a broader aid package European Union leaders have pledged to pass next month to prevent the euro region’s first default a year after the Greek bailout that failed to stop the debt crisis.
“The Germans and the French are the key players,” said Mike Shea, a managing partner and trader at Direct Access Partners LLC in New York. – (Bloomberg/ Reuters)
