The Dow Jones industrial average (INDU) closed up 60 points, or 0.5%, the S&P 500 (SPX) rose 5 points, or 0.4%, and the Nasdaq composite (COMP) increased 17 points, or 0.6%. All three major indexes pulled back in afternoon trading after inking big gains during the first half of the trading day.
The gains followed a trifecta of positive economic data.
China's government said the country's economy grew at an annual rate of 8.9% in the last three months of 2011, but that wasn't quite as slow as economists had expected.
"There have been a lot of fears about global growth," said Gerry Davies, currency analyst with ForexLive.com. "A lot of people are worried the Chinese economy is slowing down. The fact that the data came out better than expected was greeted with some relief."
Investors were also encouraged after a German sentiment index came in better than expected, and a report on New York regional manufacturing topped expectations thanks to strength in new orders and employment, said Michael Sheldon, chief market strategist at RDM Financial Group.
And fears about Europe's debt crisis still abound. A Fitch official told Reuters Tuesday, "Greece is insolvent so it will default." Greek officials and private investors are set to resume debt talks on Wednesday.
"Investors are giving the economic data and the outlook that 'things will work out' the benefit of the doubt," said Sheldon. "But we're clearly not out of the woods, and the biggest issue is still Europe."
The dollar fell against the euro and British pound, but gained versus the Japanese yen.
Gold futures for February delivery rose $24.80 to $1,655.60 an ounce.
No comments:
Post a Comment