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Overnight Markets: US stocks gain on Chinese economy
by Himanshu Singh on Sep 11, 2013 at 04:32
Wall Street jumped on Tuesday, with the S&P 500 advancing for its longest stretch since early July, after data showed China’s economy is improving amid signs of easing tensions over Syria.
The Dow Jones industrial average was up 128 points, or 0.85%, at 15,191. The Standard & Poor's 500 Index was up 12 points, or 0.73%, at 1,684. The Nasdaq Composite Index was up 23 points, or 0.62%, at 3,729.
Shares gained after China’s industrial output rose 10.4% in August from a year earlier and the nation’s retail sales gained 13.4% which reinforced the view the world's second-largest economy was stabilising.
Meanwhile, analysts said new developments about Syria reduced risk for financial markets as Syria accepted a Russian proposal to give up chemical weapons and win a reprieve from US military strikes.
S&P Dow Jones Indices announced the biggest shake-up for the Dow Jones Industrial Average in almost a decade, with Goldman Sachs Group Inc (GS.N), Visa Inc (V.N) and Nike Inc (NKE.N) replacing Bank of America Corp (BAC.N), Hewlett-Packard Co (HPQ.N) and Alcoa Inc (AA.N), respectively. The changes will take effect on 23 September.
Goldman rose 3.5% while Visa gained 3.4% and Nike advanced 2.2%. Alcoa lost 0.4%, Bank of America added 0.9% and HP shed 0.4%.
Elsewhere, McDonald's Corp (MCD.N) gained 0.5% after the fast-food restaurant chain reported a higher-than-expected 1.9% increase in global sales at established restaurants in August. E*Trade Financial Corp. soared 3.6%, the highest level since February 2011.
Microsoft Corp. climbed 2.3%, General Electric Co. advanced 2.1%, while United Technologies Corp. increased 1.7%.
On the negative side, shares of Apple fell 2.3% after the company's latest product unveilings, which included two new versions of its iPhone line.
Urban Outfitters Inc (URBN.O) slumped 10% after Janney Montgomery Scott cut its price target on the stock to $46 from $52.
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