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NEW YORK — Stocks pushed higher in afternoon trading Wednesday following reports that China will come to the aid of Europe by buying bonds.
Agence France-Presse reported that China has agreed to invest in Europe's financial rescue fund, which will be used to support struggling countries in the European Union. The Dow Jones industrial average jumped more than 100 points after the report came out in the early afternoon.
Stocks had been mixed for much of Wednesday as investors weighed stronger earnings from Boeing and Corning with uncertainty about the outcome of a key meeting among European leaders.
Top European officials are meeting in Brussels to discuss how to contain the region's debt crisis, which has festered for two years. One consideration is increasing the power of a financial rescue fund, which Germany's parliament approved shortly before U.S. stock markets opened. European indexes turned lower ahead of the meeting as doubts emerged that an agreement will be reached.
According to the preliminary reports, the Dow Jones industrial average closed up 162.04 points, or 1.38 percent, to 11,868.66. Boeing Co. led the way. It rose 5 percent after it reported a bigger profit for its latest quarter than analysts expected. It also raised its forecast for 2011 earnings.
The S&P 500 index rose 12.95, or 1.05 percent, to 1,242.00. The Nasdaq composite added 12.25, or 0.46 percent, to 2,650.67. Amazon.com Inc. slumped 11 percent after reporting a 73 percent drop in income. The retailer cited higher costs for expansion.
Strong economic reports also helped send stocks higher. Businesses ordered more heavy machinery and other long-lasting manufactured goods last month, after excluding aircraft orders, which can be volatile. That indicates businesses are still spending on equipment despite worries about a weak economy and Europe's debt problems.
Also, sales of new homes rose in September after falling for four straight months. Lower home prices enticed buyers.
The yield on the 10-year Treasury note rose to 2.19 percent from 2.14 percent late Tuesday as demand diminished for assets perceived to be relatively safe.
Corning Inc. rose 0.5 percent after reporting a 3 percent increase in income last quarter on stronger sales of glass for flat-panel televisions. Its earnings and revenue beat analysts' expectations.
First Solar Inc. rose 7 percent. It reported results a week earlier than expected, and revenue and earnings both improved. That helped the stock recover some of its losses from Tuesday, when it fell 24 percent after the surprise departure of the company's chief executive.
Associated Press contributed to this report.
Keith McCullough, Hedgeye Risk Mgmt. CEO, shares his outlook on the markets on some positive economic data.
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China needs Euro dollars for its economy! But, we are only sliding on thinner and thinner ice. When it gives way, we are all in freezing water, this all is a buy out for greedy marxists unions, and weak politicians who also are greedy, when the ice melts and we are all swimming for our lives, these guys will be gone and rich living in Switzerland.
Stocks are a major bubble. According to hundreds of years of market history, we are at bubble valuations when we consider that dividends are all time low. These low dividend ratios appear at market tops. Not at market bottoms. Google for "have we seen the stock market bottom" to understand why 2009 was not a major bottom for the market. Worst is still ahead of us.
And now, Bachman will say this is Obama's fault, and will promise that when she gets in office, she will cut the prices of all the shares in half, so people can afford to buy twice as many shares.
michelle bachman has got to be the most retarded candidate i have ever seen! what...is she on the board and top shareholder for each fortune 500 corporation, presidents dont control stock prices, corporations and the fed does!! god this bitch is stupid! some one shut her off please!
Lets see, Europe is going to wave a magic wand and the debt will be gone. Obama is bailing out homeowners and students from their loans. So what happens to all of the debt? Who gets the bill?
OBUNGLE is the magic genie, but somebody is gonna pay but if you don't have a job it won't be 20 to 30 percent of this nation which is the real unemployment figure contrary to the BS FED and MEDIA who can't figure out the difference between the truth and a lie. Guess that just leaves us po folks who still have a job looks like to me, hope I'm wrong.
@DMAC-1004611
don't worry, deficit or not, us 99% will be paying the bill with 9-9-9 pizza plan or the 20-20 I-am-too-stupid plan. The top 1% won't have to share the burden.
We the People, who else did you think.
You want that to be the reason. Maybe it's up because a Goldman executive is finally being called to task. Need him in to give him a slap on the wrist.
Pest
That is one of the stupidest things I've ever heard, that the market rises because the communists in China offer to help bail out Europe!
Stocks push higher on Europe reports, Stocks drop lower on Europe reports, Stock push higher on Europe reports, Stock drop lower on Europe reports, etc. You people at PMSnbc are insightful!
Yes, inflate the stocks just a little more, please.
Maybe China buys into the lie of "Free-enterprise" as well as we do ?
Yeah right. Yesterday it was down because of pessimism over Europe, today it is up because of optimism over Europe. It's amazing what a difference 24 hours can make. The truth is that Dow Jones means nothing because it is related to nothing. When a mouse farts it goes down because no one knows why the mouse farted. Likewise, when the mouse burps it goes up because investors think the mouse had a good meal. Anyone who bets their retirement savings on this should have their head examined. They can start with Jim Cramer who knows as much about rodent indigestion as the next Joe. Happy investing everyone and don't forget to say Booyah as that always causes the mouse to burp which translates into a good day for Dow.
The more you continue to follow the EU, the more America will continue to dissolve. It's only a matter of time. It's time for another revolution to thorw out the anti-christ, the false prophet and mystery babylon.
Read Revelations 17 & 18; you'll find out exactly who mystery babylon is and what is coming to the deceiver of the world.
But does anyone have a clue on how to end the depression? They all know how to build one but how do you end it? Hint: not through austerity!
False optimism rears it's head once again. The Wall St. casino is at full tilt.
Does anyone there read your own headlines? If I remember right you said ralley had peaked, day before yesterday. A million things happen in this world and you have the wisdom to choose which one event caused changed in market. Duh.
pest
economy. how is our economy.. should i say monetary economy.. let us be objective and see the foundation of this issue so that we can clearly grasp the solution.
the ultimate solution is to paralyse and dissolve this system of monetary economy. but the solution should begin from all of us.. for we all allow ourselves to be MATERIALISTICALLY CONDITIONED by this system and blindly continues to patronize this corrupt system. first and foremost, the system where workers compete to get the best possible pay he can get while employer constantly reduce costs to maximize profit. WE ARE ALL PATRONIZING THIS NEVER-ENDING COMPETITION FOR MONEY, where social concern is always second to monetary concern. Equality has no place in a system based on competition.
one of our primary goal should be TO EXPOSE AND STOP SUPPORTING THOSE CORRUPT ARM OF THIS SYSTEM. then our mature and intelligent citizens of the nations should join their hands in forming the alternative system which will serve our best interest on global level.
I can see signs the economy is getting a lot better. Profits are up everwhere.I'm being sacastic.Unemployment is still at 9.1 percent. Arizona is creating no new jobs. I can't even pick up a seasonal job.Profits are up because all the jobs are cheap labor overseas. I spend 10 hours a day looking for anything ,part time ,seasonal. or full time .I'll give it to december than hold off for a month until the start of another dismal year.Companies are making profits because you can pay someone in Vietnam 50 cents per hour. I really try to stop reading the news station reports that Obama's plan is working. Every day you hear the same story, 'We are really hurting'' folowed by things are finally picking up .Profits are up with those companies where there labor pool is in poor countries. I'm off 2 years now, applying for hourly jobs payig 8-9 dollars per hour. I made more money with jobs i had in high school than whats being offered now.I was at a good 6 figure comission job i loved until moving to Arizona where unemployment hasn't chaned in years and i' well educated having a history major and P.E.minor. Please don't repeat the same stories every day, about how great things are getting better, i'm trying to ignore most news shows. All we hear are lies , the same story day in and out. Most of us are not that ignorant.If i see Obama one more time on t.v. telling us to hang in there i'm going to puke.Usually i hit the mute button whenever he gives an election speech in a first grade classroom, looks good in front of cameras.