Investors snapped up a broad range of stocks Thursday, sending major indexes up more than 2 percent, after existing home sales jumped for the third straight month in June.
The 3.6 percent increase in home sales has investors excited that the hard-hit housing market might be improving. The National Association of Realtors said sales came in at 4.89 million, above the 4.84 million analysts had been expecting.
Another batch of corporate profit reports also helped boost the market's mood. Stronger-than-expected earnings and more optimistic forecasts have pushed stocks up more than 8 percent in less than two weeks. The jump has restarted a rally that began in early March, lifting the Dow and other market barometers from 12-year lows.
The Dow Jones industrial average .DJI closed up 188.03 points, or 2.03 percent, to 9,069.29 -- its highest close since November and first close above 9,000 since January.
The Standard & Poor's 500 Index .SPX gained 22.22 points, or 2.33 percent, to 976.29. The Nasdaq Composite Index .IXIC climbed 47.22 points, or 2.45 percent, at 1,973.60.
Analysts caution that volume remains relatively light, as is typical of the summer months when many traders take vacatSome analysts warn that stocks won't be able to hold their gains if companies can't increase earnings by boosting revenue rather than slashing costs.
"It's like going on a diet. You can only starve yourself for so long," said Lawrence Creatura, portfolio manager at Federated Investors in Rochester, N.Y. "You cannot cost cut your way to prosperity."
Creatura noted that companies are reducing costs in large part by getting rid of workers. That could wind up hurting other businesses as the ranks of unemployed people grow. Unemployment is at a 26-year high of 9.5 percent, and the Federal Reserve predicts it will top 10 percent by year-end.ions. It's easier for the market to make big swings when there are fewer trades.
The 3.6 percent increase in home sales has investors excited that the hard-hit housing market might be improving. The National Association of Realtors said sales came in at 4.89 million, above the 4.84 million analysts had been expecting.
Another batch of corporate profit reports also helped boost the market's mood. Stronger-than-expected earnings and more optimistic forecasts have pushed stocks up more than 8 percent in less than two weeks. The jump has restarted a rally that began in early March, lifting the Dow and other market barometers from 12-year lows.
The Dow Jones industrial average .DJI closed up 188.03 points, or 2.03 percent, to 9,069.29 -- its highest close since November and first close above 9,000 since January.
The Standard & Poor's 500 Index .SPX gained 22.22 points, or 2.33 percent, to 976.29. The Nasdaq Composite Index .IXIC climbed 47.22 points, or 2.45 percent, at 1,973.60.
Analysts caution that volume remains relatively light, as is typical of the summer months when many traders take vacatSome analysts warn that stocks won't be able to hold their gains if companies can't increase earnings by boosting revenue rather than slashing costs.
"It's like going on a diet. You can only starve yourself for so long," said Lawrence Creatura, portfolio manager at Federated Investors in Rochester, N.Y. "You cannot cost cut your way to prosperity."
Creatura noted that companies are reducing costs in large part by getting rid of workers. That could wind up hurting other businesses as the ranks of unemployed people grow. Unemployment is at a 26-year high of 9.5 percent, and the Federal Reserve predicts it will top 10 percent by year-end.ions. It's easier for the market to make big swings when there are fewer trades.
No comments:
Post a Comment