MARKET SNAPSHOT: U.S. Stock Rally Fuels Dow To 8th-biggest Point Leap Ever
U.S. stocks on Tuesday celebrated the start of a new quarter, rallying as
"Clearly there is a recognition the credit markets are healing -- usually
stocks begin to rally about six months before the end of a slowdown," said
"And with earning season less than a week away, and we haven't heard a flood of negative pre-announcements," Kleintop said.
The Dow industrials climbed 391.47 points, or 3.2%, to 12,654.36, with all 30
components ending higher, with shares of
The stock indexes solidified gains in the wake of U.S. economic data that showed the Institute for Supply Management's index inching up to 48.6% in March from 48.3% in February, topping the forecasts of analysts looking for it to slip to 47%. .
"Healthy demand abroad has boosted exports of manufactured goods, offsetting
some of the strain from weak domestic demand," said
The early economic data fostered the sentiment that says, "'Hey, we're not
falling through the floor on economic data,'" said
Separately, the Commerce Department reported U.S. construction spending fell 0.3% in February, less than the 1% drop predicted by economists.
The S&P 500 Index (SPX) added 47.48 points, or 3.6%, to 1,370.18, while the Nasdaq Composite Index (RIXF) advanced 83.65 points, or 3.7%, to 2,362.75.
The broad-based rally lifted nearly all sectors, with the Amex Securities Broker/Dealer index (XBD) among those tallying the largest gains, along with the S&P Bank Index (BIX).
The Philadelphia Gold Silver Index (XAUX) was on the short list of decliners.
Volume on the New York Stock Exchange topped 4.7 billion shares, with six stocks gaining for every issue on the decline. On the Nasdaq, 2.1 billion shares were exchanged, and advancers topped decliners 3 to 1.
On the New York Mercantile Exchange, crude futures fell
The dollar index, which measures the greenback against a basket of currencies, was at 72.55, up from 71.749 late Monday. .
A big positive behind the impressive gains on Wall Street is the favorable
reception to Lehman's offering. "It's three times oversubscribed; people are
interested in investing in Lehman," said
"Investment banks are losing money and need to raise money in the capital
markets, and fortunately they are doing it," said
Shares of Lehman (LEH) added 17.8% after the company announced plans to offer
"The thought being if you can raise the capital and take care of things, it takes off the table the collapse worries," said Stone.
UBS (UBS) shares gained 14.6% after the company disclosed
"It's not just a U.S. problem; it's the European banks' turn to say, 'Yeah, we had a little exposure there too,'" said Hogan, who also pointed to an index showing confidence among Japanese manufacturers at a four-year low as a way of putting U.S. economic woes in perspective.
Overseas, European shares started off the second quarter strongly, largely on gains from financials including UBS. .
In Asia, stocks closed mixed, with Nikon Corp. leading advances in Japanese technology stocks. .
U.S. stocks on Monday finished the worst quarter in roughly five years with a solid advance.
(END) Dow Jones Newswires