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Overnight Markets: Wall Street rebounds on strong consumer confidence data
by Himanshu Singh on Mar 26, 2014 at 03:04
Wall Street rebounded on Tuesday as a strong read on consumer confidence increased optimism about the economy and the hard-hit biotechnology sector regained its momentum.
The Dow Jones industrial average rose 91 points, or 0.56%, to close at 16,368. The Standard & Poor's 500 Index gained eight points, or 0.44%, to finish at 1,866. The Nasdaq Composite Index advanced eight points, or 0.19%, to end at 4,234.
Economic data showed consumer confidence increased more than expected in March, surging to its highest level since January 2008.
Investors also watched global issues cautiously. On Monday, major stock indexes declined amid concerns that the crisis in Ukraine could escalate.
In the latest on the housing market, US single-family home prices increased slightly more than expected in January, according to the S&P/Case-Shiller composite index of 20 metropolitan areas, while new home sales declined more than expected in February.
Biotech shares reversed earlier losses, including Regeneron Pharma (REGN.O), ending 0.8% higher, and Gilead Sciences Inc (GILD.O), up 1.3%. Alexion Pharma (ALXN.O) ended 2.2% higher.
Walgreen Co. climbed 3.3% after the owner of pharmacies said it plans to close 76 drugstores in the second half of fiscal 2014.
Netflix (NFLX.O) was down 2.1% after declining for 14 of the past 15 sessions, falling almost 19% over that stretch.
Freeport-McMoRan Copper & Gold Inc. rose 1.5% as copper prices increased. Carnival Corp. slid 5% after it narrowed its full-year profit forecast.
IBM, the world’s largest computer-services provider, advanced 3.6%. Cisco, the world’s biggest maker of network routers and switches, gained 3.6%. J&J, a health-care products company, rose 2.3%.
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