Dow rockets near 11,000
NEW YORK – Stocks surged to their highest level in five months Tuesday after a measure of the most important driver of the U.S. economy surged ahead in September, a hopeful sign for the country’s main source of employment.A surprise move by the Bank of Japan to cut its key interest rate to virtually zero also lifted stocks worldwide. The dollar fell as investors shed defensive assets, and a gauge of U.S. stock-market volatility fell.The Institute for Supply Management reported that its index of business activity at U.S. service companies expanded for the ninth straight month, and far faster than analysts were expecting. The ISM’s measure of service companies encompasses a wide range of industries, including finance, health care and trade.The Dow Jones industrial average had its biggest gain since Sept. 24, rising 193.45 points, or 1.8 percent, to close at 10,944.72. That was its highest close since May 3. The Dow is still 2.3 percent below its 2010 high, reached April 26, but is up 5 percent for the year.The Standard & Poor’s 500 rose 23.72, or 2.1 percent, to 1,160.75. The Nasdaq composite rose 55.31, or 2.4 percent, to 2,399.83.Robert Pavlik, chief market strategist at Banyan Partners in New York, said the S&P’s performance has given wary investors confidence to buy.”A lot of folks who have cash . . . are being drawn into the market because they don’t want to be left behind,” he said, adding that the S&P could reach 1,200 by year-end.Read more: Dow rockets near 11,000 – The Denver Post http://www.denverpost.com/business/ci_16263021#ixzz11bYEazwc
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