23/10/14

Dow jumps 300 points


Traders on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders on the floor of the New York Stock Exchange.

Dow jumps 300 points; industrials lead surge

U.S. stocks surged on Thursday, lifting the Dow industrials back into positive terrain for the year, as heavy-equipment maker Caterpillar boosted its profit outlook and an unexpected increase in euro-zone manufacturing eased worries about the global economy.
Investors fled perceived safe-havens including U.S. Treasury notes and gold, buying assets viewed as riskier as corporate earnings and projections for the future, especially from multinationals, eased worries about the global economy.

Caterpillar rallied after reporting a quarterly profit that soared past estimates; 3M jumped after the diversified manufacturer posted higher quarterly profit, and General Motors also tallied a better-than-expected profit in the third quarter.





"It's earnings. When we started the day the Dow was still down on the year, then you saw Caterpillar and GM come out with good news," said Chris Gaffney, senior market strategist, Everbank Wealth Management, referring to the Dow's return to the black for 2014.
The volatility of last week could be interpreted as a sign that investors are worried about whether the U.S. economy can stand on its own, once the Federal Reserve pulls the plug on bond purchases, otherwise known as quantitative easing, said Gaffney. "This week, these earnings show perhaps it will."
On Thursday, the CBOE Volatility Index, a measure of investor uncertainty, fell more than 11 percent to 15.82.

Thursday's economic reports had the four-week average of Americans filing for jobless benefits dropping to a 14-year low.
The Conference Board's index of leading indicators for September increased 0.8 percent.
Surveys had euro-area businesses performing far better than expected in October, along with a slight expansion in China's manufacturing sector.

Symbol
Name
Price
 
Change
%Change
DJIA Dow Jones Industrial Average 16761.61
 
300.29 1.82%
S&P 500 S&P 500 Index 1960.77
 
33.66 1.75%
NASDAQ Nasdaq Composite Index 4472.57
 
89.73 2.05%

At or near session highs, the Dow Jones Industrial Average rallied 302.32 points, or 1.8 percent, to 16,763.64, with Caterpillar, 3M and oil-producer Chevron leading blue-chip gains that extended to 27 of 30 components.
The S&P 500 advanced 34.46 points, or 1.8 percent, to 1,961.57, with industrials leading gains among its 10 main sectors and telecommunications the sole laggard.
The Nasdaq.rallied 91.72 points, or 2.1 percent, to 4,474.59.
For every share falling, more than four gained on the New York Stock Exchange, where 424 million shares traded by 2:20 p.m. Eastern. Composite volume cleared 2.3 billion.
The 10-year Treasury note yield, used in determining rates on mortgages and other consumer loans, jumped 7 basis points to 2.286 percent.
The U.S. dollar edged higher against the currencies of major U.S. trading partners and dollar-denominated commodities were mixed.
On the New York Mercantile Exchange, December gold futures fell $16.60, or 1.3 percent, to $1,228.90 an ounce, and crude-oil futures for December rose $1.30, or 1.6 percent, to $81.85 a barrel.
On Wednesday, U.S. stocks turned lower, following the S&P 500's biggest jump in a year, as investors considered the fatal shooting of a soldier in Ottawa, reports of gunfire in the halls of Canada's Parliament and oil falling to a more-than two-year low.

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