U.S. stocks rallied, sending the Dow Jones Industrial Average to its best gain in three months, after Intel Corp. forecast sales that beat analysts’ estimates and gauges of manufacturing improved. Treasuries fell for a third day and the dollar and yen dropped.
Intel jumped 7.3 percent, the most since March, after saying computer makers boosted chip orders in anticipation of stronger demand. General Electric Co. and Caterpillar Inc. added at least 5.2 percent as better-than-projected Federal Reserve gauges of New York manufacturing and industrial output spurred optimism the economy is recovering. American Express Co. surged 11 percent after saying write-offs will be less than forecast.
The S&P 500 added 3 percent to 932.68 at 4:05 p.m. in New York, extending its biggest three-day advance since March. The Dow climbed 256.72 points, or 3.1 percent, to 8,616.21. The MSCI World Index of 23 developed nations surged 2.8 percent.
Benchmark indexes extended gains, with the Dow and S&P 500 climbing to their highest levels since June 12, as minutes from the Federal Open Market Committee’s June meeting showed policy makers expect the U.S. economy to contract 1 percent to 1.5 percent this year, less than they anticipated in April, even as unemployment climbs to as high as 10 percent.
The S&P 500 has risen 6.1 percent so far this week as better-than-estimated retail sales boosted consumer shares and companies from Goldman Sachs Group Inc. to Johnson & Johnson reported earnings that beat analysts’ estimates.
(Bloomberg.com)
Join the official YWN WhatsApp status
5 Responses
Intel’s prosperity is based on the low-cost Atom chip. Nothing to base a future on.
The banks are up due to liberal use of the “cheat” button at the Fed used to “print money” – that’s not sustainable.
Unemployment is still rising, and home prices are still falling. That isn’t good.
akuperma, the Dow’s rally has all to do with the private sector companies that are involved with healthcare in this country being manipulated by the Obama administration that somehow they will benefit from his so called “Healthcare Reform”. Funny, I don’t see any blame laid at Obama’s feet for the rise in unemployment and the home prices still falling.
Today it was Intel (and Tech) and the Banks (though except for Goldman Brothers, the news was more of the less-bad than good).
The impact from changes in health care reform are well in the future. The reason Obama can escape blame for unemployment and home prices falling is that both problems started under Bush, plus neither Obama nor Bush seems to know anything about economics, and Obama has much better mannered children and a cute do (Obama would be a perfect Head of State if we had the British system).
lets not forget how goldman sachs will grow under cap n tax. they will be the clearing house. I am waiting till all this comes back to bite timothy turbo tax cheat githner right in the backside!
“HAKOL BIDAY SHOMAYIM”
The real reasons behind these ups and downs have NOTHIHG to do with anything that goes on around here, beside for the Limud HaTorah, Maasim Tovim, and Kiyum HaMitzvos