| Stocks Rally After Fed Says It Can Do More To Stimulate The Economy |
| Aug-24-2012 |
| Keywords: federal reserve, bernanke, stimulus, easing, rally, stocks, |
Renewed hopes regarding further action by the Federal Reserve spark a rally on Wall Street, but gains weren't enough to head off weekly losses.
The Dow Jones Industrial Average jumped 101 points, the Nasdaq Composite climbed 16 point, and the S&P 500 gained 9 points.
However those gains weren't enough to stave off weekly losses for all three of the major stocks indexes, both the Dow and S&P 500 ended in the loser's column for the first time in seven weeks.
The stock market today getting a lift after investors learned Federal Reserve Chairman Ben Bernanke told the House Oversight and Government Reform Committee the central bank has room to ease monetary policy further to speed up the U.S. economic recovery.
The mood of investors also got a lift on news the European Central Bank is considering a plan to target sovereign bond yields, according to a report from Reuters citing unnamed sources.
And the market also reacted to great news on durable goods orders, in July orders surged 4.2% on strong demand for civilian aircraft. That is the largest jump in orders since December of last year.
The triple digit rally on the blue chip index led by the shares of Verizon Communications, up more than 2% on the day. American Express, Boeing, IBM, Kraft and Pfizer all logged better than 1% gains.
The shares of Eli Lilly rallied 3.4% after the pharmaceutical company said although its Alzheimer's drug failed to meet main trial goals, it was able to slow cognitive decline in patients suffering from mild to moderate forms of the disease. |
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Posted by Lou Dobbs Staff at 7:00 PM Email to a friend |
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