View the article online at http://citywire.co.uk/money/article/a662097
Overnight Markets: US stocks jump on upbeat housing data
Shares also gained as Federal Reserve Chairman Ben Bernanke remained steadfast in supporting the Fed's stimulus policy in a second day before a congressional committee.
Wall Street gained on Wednesday, with the Dow Jones Industrial Average rising to the highest level in five years, as better-than-estimated housing data bolstered economic optimism Federal Reserve Chairman Ben Bernanke remained steadfast in supporting the Fed's stimulus policy.
The Dow Jones industrial average was up 176 points, or 1.27%, at 14,076. The Standard & Poor's 500 Index was up 19 points, or 1.27%, at 1,516. The Nasdaq Composite Index was up 33 points, or 1.04%, at 3,162.
Shares rose after Bernanke defended the Fed's buying of bonds to keep interest rates low to boost growth in a second day before a congressional committee, Bernanke defended the Fed's buying of bonds to keep interest rates low to boost growth.
Better-than-expected data on business spending plans and the housing market contributed to the positive sentiment. Pending home sales jumped 4.5% in January, three times the rate of growth that had been expected.
While orders for durable goods fell more than expected in January, non-defense capital goods orders excluding aircraft showed the biggest gain since December 2011.
FedEx Corp., operator of the world’s largest cargo airline and an economic bellwether, added 2.5% to pace gains in transportation shares.
In earnings news, Priceline.com rose 2.6% after reporting adjusted earnings that beat expectations. TJX Cos Inc jumped 2.5% after the retail chain operator posted higher fourth-quarter results.
On the negative side, Target Corp dipped 1.1% as it offered a cautious outlook for consumer spending in 2013 following a weak holiday quarter.
First Solar Inc plunged 14% after failing to give a full-year earnings and sales outlook, though it also swung to a quarterly profit.
Groupon Inc tumbled 21% after the bell after reporting its fourth-quarter results.
In Asia, shares gained on Thursday as better-than-estimated US economic data bolstered confidence in the global recovery.
The MSCI Asia Pacific Index climbed 0.9% to 134 as of 10:35 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average advanced 1.9% after a report showed the nation’s industrial production rose for a second month in January. South Korea’s Kospi Index increased 1% even as the country’s factory output unexpectedly dropped last month.
Australia’s ASX 200 Index gained 0.7%, while New Zealand NZX 50 Index added 0.8% and Singapore’s Straits Times Index rose 0.4 percent. Hong Kong’s Hang Seng Index increased 0.9% and China’s Shanghai Composite Index advanced 0.1%.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.