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Overnight Markets: Wall Street jumps on China exports
by Himanshu Singh on Sep 10, 2013 at 03:59
Wall Street jumped on Monday, with the Dow Jones Industrial Average registering its biggest gain since 11 July and the Nasdaq ending at its highest level since September 2000, as exports from China topped forecasts, boosting optimism about the health of the global economy.
The Dow Jones industrial average was up 141 points, or 0.94%, at 15,063. The Standard & Poor's 500 Index was up 17 points, or 1%, at 1,672. The Nasdaq Composite Index was up 46 points, or 1.26%, at 3,706.
Basic materials shares led the day's gains after China's August exports handily beat market expectations while consumer inflation held steady. U.S. Steel Corp (X.N) jumped 3.5% while Alcoa Inc (AA.N) rose 2%. Caterpillar Inc. increased 2.6%, while 3M Co., the maker of car fuel-system cleaners to dental braces, climbed 1.5%.
Sentiment was also lifted by merger activity and easing concerns about a potential Western-led strike on Syria. A Russian proposal to place Syria's chemical weapons under international control was welcomed by the government in Damascus.
In deal news, Koch Industries agreed to buy electronic connectors maker Molex (MOLX.O) for about $7.2 billion. Ares Management LLC and the Canada Pension Plan Investment Board reached a deal to buy privately owned US luxury retailer Neiman Marcus for $6 billion. Molex shares surged 31.7%.
Isis Pharmaceuticals Inc (ISIS.O) jumped 13.9% after the company said it had reached a collaboration with Biogen Idec Inc (BIIB.O) on treatments for neurological disorders. Biogen rose 1.6%.
Shares of homebuilders rallied on bets of a cap on mortgage rates, which had risen recently. PulteGroup (PHM.N) added 7.5%.
Microsoft Corp. rose 1.6% to help lead gains among technology companies, while Cisco Systems Inc. advanced 1.6%. Apple Inc. rose 1.6% before an investor event tomorrow where the company will unveil new iPhone models.
Delta Air Lines Inc. (DAL) rallied 9.4% as the world’s second-largest carrier will replace BMC Software Inc. in the S&P 500.
On the negative side, Tenet Healthcare (THC.N) shares fell 3.7% after Barclays Capital on Monday downgraded the health care sector to "market weight" from "overweight."
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