Gains see US market shake off doldrums

Gains see US market shake off doldrums

Stocks rose sharply today, giving the market its fourth straight week of gains, after a sharp increase in orders for manufactured goods allowed investors to shake off several days of doldrums.

The Dow Jones industrial average jumped nearly 200 points, its first gain in three days. The market has now had its longest weekly winning streak since stocks rose to their highest levels of the year in late April.

A surprise jump in durable goods orders and corporate spending provided the boost to US stocks, as did a strong earnings report from Nike. In Europe, shares also rose after German business confidence rose unexpectedly to its highest level in over three years.

Gold prices climbed again, briefly touching 1,300 US dollars an ounce, as many investors remained cautious. The dollar and Treasury prices fell.

Industrial stocks including General Electric, Caterpillar and United Technologies gained after the Commerce Department reported that orders for durable goods excluding transportation rose last month at their fastest pace in five months. The increase was double what economists polled by Thomson Reuters had expected.

Stocks have been volatile in recent sessions as investors react to the latest pieces of economic data. Much of the economic news throughout September has been better than expected, pushing major indexes sharply higher during the month after a big sell-off in August.

Zahid Siddique, an associate portfolio manager at Gabelli Equity Trust, said traders are only reacting to the latest news because there still is not certainty about the pace of recovery.

“Based on the daily data they get, they move the market one way or another,” Siddique said.

Today’s upbeat manufacturing report, particularly a jump in corporate spending, is what traders have zeroed in on to send stocks higher, he said.

The Dow Jones industrial average rose 197.84, or 1.9%, to close at 10,860.26. The Dow has risen 8.4% in September, but is only up 4.1% for the year and is still 3.1% below its 2010 high, reached on April 26.

The Standard & Poor’s 500 index rose 23.84, or 2.1%, to 1,148.67, ending a three-day losing streak. The index, a commonly used benchmark for professional investors, also climbed back above a key technical trading level today.

The Nasdaq composite index rose 54.14, or 2.3%, to 2,381.22. The technology-focused index has been the best performer during this month’s rally, jumping 12.6%.

About five stocks rose for every one that fell on the New York Stock Exchange, where volume came to 1.1 billion shares.

More in this Section

Wetherspoons boss Tim Martin hits out at corporate governance rulesWetherspoons boss Tim Martin hits out at corporate governance rules

DCC shares fall 6% on profit declineDCC shares fall 6% on profit decline

Regulator: Banks still failing customersRegulator: Banks still failing customers

Sterling inches lower as Tory vote boost fadesSterling inches lower as Tory vote boost fades


Lifestyle

Aileen Lee meets Christina Kenny - co-founder and design director of Lamb Design - to talk about her work and inspirations.Christina Kenny of Lamb Design: ‘I love bringing the outside in and inside out’

Tyrone designer Sharon Wauchob on her career and the worth of luxury fastion. By Paul McLachen.From Marc Jacobs to her own label, Tyrone designer Sharon Wauchob on her life in fashion

The recent sentencing of two teenage boys for the murder of Ana Kriégel has once again brought the issue of pornography into public discourse. The details of the case, which are finally coming into public knowledge, illuminate some very worrying trends that are pervasive in the modern adolescent world and as parents and indeed as a society we can no longer languish in complacency.Learning Points: Hardcore porn can pollute our children’s minds

HUSBAND and wife Justin and Jenny Green run Ballyvolane House, in Castlelyons, Co Cork. The mansion and former dairy farm, which was built in 1728, is where Justin grew up. Raised to Scottish parents in Hong Kong, Jenny met fellow hotelier Justin while working in the Mandarin Oriental Hotel. Having worked in the UK and Bali, they returned to manage Ballyvolane House, as an Irish country house, in 2004.Parents for the Planet: Green family has greener outlook at country house

More From The Irish Examiner