Dow Climbs 144 Points on Positive Durable Goods
The Dow climbed 144 points on Wednesday to close at 11,320. The S&P 500 rose 15 points to finish at 1,177. The NASDAQ rose 21 points to close at 2,467. Stocks extended the rally for S&P 500 after reports on durable goods orders and home prices beat economists’ forecasts and banks advanced.
Financial stocks in the S&P 500 rose 2.8%, the biggest gain within 10 industries, a rare treat for an industry which has been beaten up over the past few months, even years. Bank of America rose 11% as analysts said it has no urgent need to raise capital. Homebuilders in S&P indexes added 3.6% as home prices beat economists' forecasts. Newmont Mining slumped 1.6% after gold futures plunged the most since 2008 as demand for havens waned on speculation financial markets may be stabilizing.
Treasuries fell, pushing 10-year note yields to the highest in a week, after a report showed durable goods orders rose in July more than forecasted, renewing optimism that the U.S. economic recovery may accelerate. The gain in the stock market, along with some renewed confidence in the economy, caused gold prices to take a huge drop, falling $104 to $1,757 an ounce. The US Dollar also had a positive day as the economy continued to provide optimism. Crude Oil remained at $85 a barrel on all the news that came out today.
In other breaking news, the CEO of Apple Steve Jobs resigned. This has caused the NASDAQ 100 futures to fall heading into Thursday's trading session. Jobs helped turn Apple into a global empire with it's Mac, ipod, and iphone products.