Dow Jones: 12,258.20 (+191.40) SP 500: 1,330.97 (+22.53) Nasdaq: 2,798.74 (+50.67)
INVESTORS BETTING on a big gain in US payrolls pushed Wall Street to its best one-day rally in three months yesterday, but weak volume lingers as a concern for those hoping for another leg higher.
As oil paused from its recent climb, the market’s focus shifted to stronger-than-expected economic data a day before the February US employment report.
The median estimate is for a gain of 185,000 jobs, according to economists polled by Reuters, but market sentiment was leaning toward a number above 200,000, traders said.
“There are still concerns about high oil prices but the bottom line is, the US economy is improving. We continue to get confirmations of that, and it’s a good sentiment heading into Friday’s numbers,” said Ryan Detrick, technical analyst at Schaeffer’s Investment Research in Cincinnati, Ohio.
The Dow Jones industrial average was up 191.40 points, or 1.59 per cent, at 12,258.20. The Standard Poor’s 500 Index was up 22.53 points, or 1.72 per cent, at 1,330.97. The Nasdaq Composite Index was up 50.67 points, or 1.84 per cent, at 2,798.74.
The Dow and SP 500 posted their biggest one-day gains since December 1st. However, volume continued to be below average on days when the market rallies, causing some traders to be skeptical about the durability of the rally.
About 7.81 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below last year’s daily average of 8.47 billion.
The put-to-call ratio in the options market also didn’t change much despite the day’s rally as traders continued to hedge against a potential drop in the market.
Industrial stocks led the market higher, boosted by a weaker dollar and an improving outlook for global demand.
The SP industrial index gained 2.4 per cent, with Caterpillar up 3.2 per cent to $104.25.
Oil prices retreated from near 2½-year highs. Brent crude futures fell $1.56 to settle at $114.79 after Venezuela’s proposed plan to end Libya’s crisis set off profit-taking.
Several top US retailers posted bigger-than-expected sales gains for February. The SP retail index rose 1.2 per cent. – (Reuters)
. – (Reuters)
