Financial News Story of the Day – Dow Jones and S&P 500 Skyrocket Up 3% Each
The Dow Jones is up over +337 points and the S&P 500 also gained nearly +36 points in what has been the best trading day for U.S. stocks in the month of December, 2011. Both indexes jumped by 3% on strong economic data in the U.S. and in Europe. Here in the U.S., the housing market finally saw some positive signs as housing starts grew more than expected. There is also more positive unemployment data as many companies are hiring over the holidays, so seasonal data may be skewing things quite a bit not counting those who have given up searching for jobs or are currently underemployed (unable to earn enough to pay their bills). News in Europe looked positive as well as European banks agreed to buy sovereign debt bonds and lend money to troubled Italy and Spain at substantially discounted rates. It’s a temporary solution at best that could potentially avoid a global financial meltdown (source: MarketWatch.com).
Excerpt: “Ahead of the opening bell, data showed new construction of U.S. houses rose 9.3% in November to a seasonally adjusted annual rate of 685,000 — the highest pace since April 2010. Economists polled by MarketWatch had expected a rate of 635,000 for last month.
Investors also got a burst of good news from Europe, where the heavy debt loads and surging borrowing costs of several euro-zone members have raised the prospect of a global recession.”
Daily Finance Summary – U.S. Stocks Soar in December’s Best Day Yet
- Both the Dow and the S&P saw a 3% gain on positive economic news
- Japan lowers its growth forecast
- Oracle’s stock drops 8% on weaker than expected growth
- Republicans stay firm on extended unemployment benefits
- 2011 holiday retail sales expected to be strong despite economy