| Stocks Surge On Hopes Of European Central Bank Action |
| Jul-26-2012 |
| Keywords: stocks rally, european central bank, quantitative easing, draghi, economic stimulus |
Stocks are on track to log solid gains as investors bet on a major central bank action in Europe.
All three major U.S. stock indexes are up about one percent in afternoon trading, with the Dow Jones Industrial Average is on track to post a triple digit gain.
The mood of the market today turned from cautious to jubilant following comments from European Central Bank President Mario Draghi.
Draghi asserting that the ECB stands ready to do whatever it takes to preserve the euro. That comment is being interpreted as a sign that the central bank is preparing to embark on its own version of quantitative easing in order to tackle the region's financial crisis.
The ECB president's remarks come just days after the Wall Street Journal reported that the Federal Reserve is growing frustrated with the pace of our economic growth, and is closer to taking action in order to stimulate the economy.
On the U.S. front, weekly jobless claims last week fell a steeper than expected 35,000, coming in at a near four-year low of 353,000.
The Commerce Department today reported that orders for durable goods last month jumped 1.6%. The better than expected gain coming on strong demand for aircraft. However, excluding orders for aircraft, demand for durable goods fell 1.1%.
Pending home sales unexpectedly fall, down 1.4% in June, but are still up 9.5% compared to a year ago. The National Association of Realtors attributing the monthly decline in sales on fewer home listings entering the market. |
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Posted by Lou Dobbs Staff at 8:00 AM Email to a friend |
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