It seemed like investors were just not concerned with bad news plaguing the economy. Wednesday proved to be a complete contrast as traders turned their focus on domestic economic data, brushing aside eurozone worries and tensions in the Korean peninsula. The rally helped markets recoup all of Tuesday's steep losses.
The Dow average, which had plunged more than 142 points on Tuesday, surged nearly 151 points, or 1.4%, Wednesday as economic data pointed towards an improving domestic economy. The tech-laden Nasdaq rallied the most, rising more than 48 points, or 1.93%, to 2543.12. The widely followed S&P 500 index gained 17.62 points, or 1.5%, to 1198.35. On the New York Stock Exchange, only 830 million shares exchanged hands as advancing issues beat those that fell in price by a four-to-one margin.
Investors' appetite for riskier bets sent Treasury prices lower. The yield on the benchmark 10-year note jumped to 2.92% from 2.77%. Gold prices settled at $1375 an ounce, down from $1379.
Shares in luxury jeweler Tiffany TIF jumped to their all-time high after the company reported estimate-beating earnings as strong jewelry sales aided results. The company also said it sees strong holiday sales, sending its stocks up 5.3% to $61.33. Deere DE reported profit that beat estimates but its shares fell 0.14% after the company' short-term outlook disappointed investors.
Only three of the thirty Dow components closed in the red. Hewlett-Packard HPQ, Verizon VZ and Procter & Gamble PG led the Dow lower. Gains on the blue-chip average were led by Caterpillar CAT, DuPont DD, Boeing BA and United Technologies UTX.
Boeing BA rose 2.8%, United Tech UTX 2.6%, American Express AXP and Caterpillar CAT 2.5%, DuPont DD 2.2% and Disney DIS 2.1%.
All ten S&P500 industry sectors marked gains in the day, led by industrials (+2.2%), basic materials (+2.0%), tech (+1.8%), financials (+1.7%), and oil and gas (+1.7%).
Amid talks that Portugal was under pressure to accept a bailout, European markets turned lower today. The euro fell to a nine-week low against the US dollar as no clear signs of a solution to the eurozone debt crisis appeared in sight.
AMER EXPRESS CO (AXP): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
CATERPILLAR INC (CAT): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DEERE & CO (DE): Free Stock Analysis Report
DISNEY WALT (DIS): Free Stock Analysis Report
HEWLETT PACKARD (HPQ): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
TIFFANY & CO (TIF): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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