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Overnight Markets: Wall Street gains on strong auto sales
by Himanshu Singh on Sep 05, 2013 at 04:26
US stocks advanced on Wednesday, led by automakers and technology companies, as a possible military action in Syria was seen as limited and the Federal Reserve said the economy maintained a “modest to moderate” pace of growth.
The Dow Jones industrial average rose 97 points or 0.65%, to 14,931, the S&P 500 gained 13 points or 0.81%, to 1,653 and the Nasdaq Composite added 36 points or 1.01%, to 3,649.
The US Senate Foreign Relations Committee approved a resolution authorising a limited US military intervention in Syria.
Separately, the Fed said yesterday the economy continued to grow from early July through late August, even as borrowing costs increased. The central bank’s Beige Book survey of economic conditions in 12 Fed districts showed consumers spent more on travel and tourism, while manufacturing expanded “modestly.”
Shares of Ford (F.N) and General Motors (GM.N) posted their best day of the year as August US auto sales marked the strongest month since October 2007. Ford jumped 3.5% and GM added 5%.
Lowered concern over Syria was also seen in the oil market, with US crude down 1.2% and Brent down 0.6%.
With global supplies of dynamic random access memory chips already tight, shares of Micron Technology (MU.O) and SanDisk (SNDK.O) rose after reports of a fire at Hynix, the world's No. 2 DRAM chips maker. Micron closed up 5.3% and SanDisk added 3.3%.
Apple Inc. gained 2.1% as Cantor Fitzgerald LP initiated coverage of the shares with a buy rating and amid speculation that the company may team up with China Mobile Ltd.
E*Trade Financial (ETFC.O) jumped 8% after it said US bank regulators have approved its request to use capital from its bank subsidiary for broader corporate purposes.
Network equipment maker Ciena Corp (CIEN.O) soared 13.8% after it forecast strong revenue for the current quarter as it gains from a recovery in spending by telecom carriers, its biggest customers.
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