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Overnight Markets: US stocks jump on upbeat housing data
by Himanshu Singh on Feb 28, 2013 at 03:43
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.
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As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
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