...

Better earnings, economy news bolster US stocks

Business Materials 25 January 2008 02:24 (UTC +04:00)

( dpa )- Wall Street stocks booked strong gains for a second straight session Thursday amid a backdrop of seemingly positive economic news, after the global selloff that grips markets earlier in the week.

Word emerged Thursday of a quick agreement in the US Congress on a 150-billion-dollar economic stimulus package, meant to stem fears of a looming recession.

Xerox Corp and Lockheed Martin Corp both reported profits that beat Wall Street expectations. Meanwhile, commodity producers saw share prices rise after China reported economic growth in excess of 11 per cent annualized for a fourth straight quarter.

"The earnings that have been reported for the fourth quarter have been better than expected, outside of the financial companies," Tom Wirth, senior investment officer at Chemung Canal Trust Co, told the Bloomberg financial news agency. "Our economy, though it's slowed, is still in a growth trajectory. We don't expect a recession."

The blue-chip Dow Jones Industrial Average gained 109.44 points, or 0.88 per cent, to 12,378.61. The broader Standard & Poor's 500 Index rose 13.47 points, or 1.01 per cent, to 1,352.07. The technology-heavy Nasdaq Composite Index soared 44.51 points, or 1.92 per cent, to 2,360.92.

The US currency fell against the euro to 67.753 euro cents from 68.32 euro cents on Wednesday. The dollar was stronger agains the Japanese currency at 107.15 yen from 106.77 yen on Wednesday.

Gold leapt 30.30 dollars to 913.40 dollars per fine ounce.

Latest

Latest