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Thursday, October 27, 2011

Stocks end higher on Europe hopes (ext)

NEW YORK (CNNMoney) -- Is it a mirage or could a deal to save Europe from a sovereign debt disaster be near?

By late afternoon Wednesday, investors started betting that European leaders could be close to a deal. All indexes closed the trading day higher.

In yet another day of jagged moves, the Dow Jones industrial average (INDU) closed up 162 points, or 1.4%. The S&P 500 (SPX) moved up 13 points, or 1%, and the Nasdaq composite added (COMP) 12 points, or 0.5%.

The region's leaders released only sketchy details that they might be closer to a compromise to shore up funding for troubled EU nations. Still, that was enough to spark an afternoon rally in stocks.

"We're so beholden to what's going to come out of Europe that any little rumor will have a short-term impact up or down," said Michael James, senior equity trader at Wedbush Morgan.

European government heads have pledged to unveil a comprehensive plan to address the region's debt and banking crisis at the end of Wednesday's summit.

"We all expect the plan is going to happen. The question is -- is it really going to be big enough to make a dent?" said Mark Lamkin, founder and president of Lamkin Wealth Management in Louisville, KY.

The dollar fell against the euro and Japanese yen, but rose versus the British pound.

Oil for December delivery lost $2.97 to close at $90.20 a barrel.

Gold futures for December delivery rose $23.10 to close at $1,723.50 an ounce.

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