| Hopes of Central Bank Action Fuels Another Rally On Wall Street |
| Jul-27-2012 |
| Keywords: stocks, surge, europe, central bank, stimulus, starbucks, facebook |
Hopes of Central Bank Action Fuels Another Rally On Wall Street
Stocks surge for a second straight day as European and U.S. leaders seem to setting up for possible major central bank action on both sides of the Atlantic.
The Dow Jones Industrial Average scored is second consecutive triple digit gain, up 188 points, settling above 13,000 for the first time since May 7, 2012. The Nasdaq Composite gained 65 points, the S&P 500 finished 26 points higher.
Today's rally solidified weekly gains for all three of the major stock indexes. The Dow leading the charge with a 2% gain, now higher for the third straight week.
Stocks today initially getting a charge out of news that French President Hollande and German Chancellor Merkel released joint statement, pledging to do all they can to support the euro and eurozone economy. Market action getting a further boost on reports that the European Central Bank is actively considering monetary measures to stabilize the currency bloc.
Slightly better than expected news on the U.S. economy also helped to fuel gains in the stock market. The Commerce Department reported the U.S. economy grew at an annualized pace of 1.5% in the second quarter. That significantly lower than the first quarter in which the economy expanded at a rate of 2%. The final reading of the Reuters/University of Michigan consumer-sentiment index showed confidence among U.S. consumers increased to 72.3 in late July from 72.0 earlier in the month. That was higher than expected, but still the lowest level of the year.
Financial and health care stocks presented the market with its broadest support. JP Morgan up 3%, Bank of America gained 1.95%.
Merck's better than expected quarterly results and re-affirmed outlook helped propel it to the top spot on the Dow today. Merck closed the session up 4% on the session.
Facebook and Starbucks on the other hand having a horrible day. Both stocks tripping circuit breakers after falling more than 10% earlier in the session. Facebook's stock closing the session at an all-time low of less than $24 a share, losing nearly 12% on weakening revenue growth and a lack of guidance.
Starbucks meanwhile dropped about 9.5% after missing earnings targets, closing the session under $47.50 a share. |
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Posted by Lou Dobbs Staff at 10:00 AM Email to a friend |
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