Weaker dollar and Australian rate hike spur speculators, with the DJX posting a triple-digit gain for the second straight day. Jesse Purves
Wall Street rallied tuesday, gaining for a second straight session as a weaker dollar boosted commodities and dollar-sensitive stocks, fostering a broad-based advance.
The S&P 500 ( SPX ) index gained 14 points, or 1.4%, and the Naz composite ( COMP ) rose 35 points, or 1.7%.
Gains were broad-based, with twenty-nine of thirty DJX stocks rising as investors piled into a selection of stocks battered in a 14 day selloff. Fears that the rally had gotten ahead of the recovery caused the selloff at the end of the third quarter and start of the 4th.
'I think most people believe that stocks are going to typically keep drifting higher for the next few months,' said Gary Webb, boss man at Webb finance Group. 'So while nothing fundamental has changed this week, stockholders are taking chances to buy on the lows.'
'We've seen a large amount of these lift moments over the last month, these short, sharp pullbacks that ended up bringing people back in,' said Fred Dickson, chief market strategist at D.A. Davidson & co.
investors also welcomed reports that Australia became the first major economy to lift interest rates since the beginning of the money crisis.
in the meantime, the falling dollar boosted gold to an all-time high of $1,045 an oz. The feeble U.S.
A weaker-than-expected reply to a state debt auction dulled some of the shine on the rally.
Economy : A upbeat reading on the services sector helped spark Mon.'s advance, but there had been tiny else on the docket till wednesday when readings on shopper credit and the Treasury budget are due.
seven months and counting : A rally in U.S. Stocks that began in March, petered out late Sep at the end of an otherwise upbeat third quarter. In the July-September period, the DJX and S&P 500 both jumped 15%, their best quarter in a decade, while the Nasdaq rose 15.7%, its best quarter in 6 years. But the Sep selloff was modest amid the broader rally that's been in place since last March. After hitting a six-year low, the Nasdaq has gained just about 68%. on the move : The broad advance benefited a number of stocks and sectors.
Materials and commodities stocks rose, including Dow elements Alcoa ( AA, Fortune 500 ), DuPont ( DD, Fortune 500 ), Chevron ( CVX, Fortune five hundred ) and Exxon Mobil ( XOM, Fortune 500 ).
The Dow's other biggest gainers were Caterpillar ( moggy, Fortune 500 ), Hewlett-Packard ( HPQ, Fortune five hundred ), IBM ( IBM, Fortune five hundred ), JPMorgan Chase ( JPM, Fortune five hundred ) and United Technologies ( UTX, Fortune 5 hundred ).
Market breadth was positive. On the New York Stock Exchange, winners topped losers by just about four to one on volume of 1.23 bill shares. On the Nasdaq, advancers topped decliners by just about three to one on volume of 2.42 bill shares.
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