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Stocks edge higher, keeping September rally alive
Source: Agencies |
September 16, 2010, Thursday
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STOCKS overcame an early slide yesterday and closed higher as investors tried to keep a September rally alive.
Major indexes had opened lower after a poor reading on factory activity in New York, but turned higher around midday after getting better news on U.S. industrial production. That report showed that the national industrial sector grew for the 12th time 14 months.
Better news on manufacturing was the main trigger behind the rally that began in early September and has now propelled stocks higher on nine out of the past 11 days. The Dow Jones industrial average, which gained 46 points yesterday, is up 5.6 percent over that time.
In corporate news, MasterCard Inc. rose sharply after saying it expects its income to rise at least 20 percent this year. Shares rose US$10.43, or 5.2 percent, to US$210.18.
Kraft Foods Inc., known for brands like Nabisco and Maxwell House, rose after saying its earnings would jump between 9 percent and 11 percent over the next three years thanks to growth in developing markets. Shares rose 53 cents to US$31.58 and earlier hit a new high for the year.
Stocks rose sharply during the first half of the month, even though September is historically a weak period for the market. A strong manufacturing report from the Institute for Supply Management set off the rally two weeks ago.
The Dow Jones industrial average rose 46.24, or 0.4 percent, to close at 10,572.73.
Broader indexes also rose. The Standard & Poor's 500 index gained 3.97, or 0.4 percent, to 1,125.07 and the Nasdaq composite rose 11.55, or 0.5 percent, to 2,301.32.
Traders yesterday focused more on the industrial production report, setting aside a disappointing reading on manufacturing activity in New York. The Empire State Manufacturing Survey Index, which measured activity in the state in September, came in well below forecasts.
European markets were mainly lower, but stocks in Japan surged 2.3 percent after the country's government stepped in to weaken the yen. The yen had been hitting 15-year highs against the dollar, which makes it harder for Japanese exporters to compete on global markets.
Japan sold an undisclosed amount of yen in foreign exchange markets to weaken its currency, which was threatening to endanger manufacturers like Toyota Motor Corp. and Sony Corp. that export goods around the world. The dollar rose 3 percent against the yen.
Treasury prices edged lower. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.72 percent from 2.67 percent late Tuesday. Its yield is often used to help set interest rates on mortgages and other consumer loans.
Rising stocks slightly outpaced falling ones on the New York Stock Exchange, where volume came to 900 million shares.
Major indexes had opened lower after a poor reading on factory activity in New York, but turned higher around midday after getting better news on U.S. industrial production. That report showed that the national industrial sector grew for the 12th time 14 months.
Better news on manufacturing was the main trigger behind the rally that began in early September and has now propelled stocks higher on nine out of the past 11 days. The Dow Jones industrial average, which gained 46 points yesterday, is up 5.6 percent over that time.
In corporate news, MasterCard Inc. rose sharply after saying it expects its income to rise at least 20 percent this year. Shares rose US$10.43, or 5.2 percent, to US$210.18.
Kraft Foods Inc., known for brands like Nabisco and Maxwell House, rose after saying its earnings would jump between 9 percent and 11 percent over the next three years thanks to growth in developing markets. Shares rose 53 cents to US$31.58 and earlier hit a new high for the year.
Stocks rose sharply during the first half of the month, even though September is historically a weak period for the market. A strong manufacturing report from the Institute for Supply Management set off the rally two weeks ago.
The Dow Jones industrial average rose 46.24, or 0.4 percent, to close at 10,572.73.
Broader indexes also rose. The Standard & Poor's 500 index gained 3.97, or 0.4 percent, to 1,125.07 and the Nasdaq composite rose 11.55, or 0.5 percent, to 2,301.32.
Traders yesterday focused more on the industrial production report, setting aside a disappointing reading on manufacturing activity in New York. The Empire State Manufacturing Survey Index, which measured activity in the state in September, came in well below forecasts.
European markets were mainly lower, but stocks in Japan surged 2.3 percent after the country's government stepped in to weaken the yen. The yen had been hitting 15-year highs against the dollar, which makes it harder for Japanese exporters to compete on global markets.
Japan sold an undisclosed amount of yen in foreign exchange markets to weaken its currency, which was threatening to endanger manufacturers like Toyota Motor Corp. and Sony Corp. that export goods around the world. The dollar rose 3 percent against the yen.
Treasury prices edged lower. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.72 percent from 2.67 percent late Tuesday. Its yield is often used to help set interest rates on mortgages and other consumer loans.
Rising stocks slightly outpaced falling ones on the New York Stock Exchange, where volume came to 900 million shares.
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