Thread: Stocks rise sharply on signs of economic growth

Stocks rise sharply on signs of economic growth

By David K. Randall, AP Business Writer

NEW YORK — A jump in hiring by small businesses and reports of global expansion in the manufacturing industry sent U.S. stocks sharply higher Wednesday and pushed bond prices down.

Fears that the European financial crisis would spread also eased after European Central Bank President Jean-Claude Trichet suggested that the bank could buy bonds by struggling countries within the European Union. That, along with a better-than-expected bond auction by Portugal, helped send the euro and European stock indexes sharply higher.

The euro rose 0.8% after the auction. The Euro Stoxx 50 index, which tracks blue chip companies in countries that use the euro, rose 1.8%.


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ADP Employer Services said employment at private companies jumped by 93,000 in November as small businesses added the largest amount of workers in three years. Economists had expected private companies to add 70,000 jobs. Private sector employment grew by 83,000 in October, ADP said.

"The U.S. economy is all about jobs and anything that leads folks to believe that there's a better job market will be good for equities," said Paul Zemsky, the head of asset allocation at ING Investment Management.

Manufacturing increased in November, the Institute of Supply Management said. It is the 16th consecutive month that its index showed that manufacturing activity expanded.

Bonds fell sharply as investors bought riskier assets. The yield on the 10-year Treasury bond rose to 2.91% from 2.80% late Tuesday.

Stock rose in Asia after reports signaled that the Chinese economy is growing. A Chinese state index of manufacturing activity rose to 55.2 in November from 54.7 in October. Any number above 50 indicates economic expansion. Monthly readings have stayed above that number for 21 straight months. A competing Chinese survey by HSBC rose to an eight-month high.

Hong Kong's Hang Seng rose 1.1%. China's benchmark Shanghai Composite Index rose 0.1%. Stocks have fallen in Asia since early November after China raised a key interest rate to combat inflation.

Before the U.S. market opened, the Labor Department reported that productivity grew at an annual rate of 2.3% during the third quarter, better than the initial estimate a month ago. The Federal Reserve will put out its report on regional economic activity later in the day.

http://www.usatoday.com/money/markets/2 ... sday_N.htm

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Dow up 250 as economy looks stronger

Stocks soar as ADP says private employers added 93,000 jobs in November.
The Fed sees modest nationwide growth. Hopes build for a European financial rescue. Auto sales rise.

Posted by Charley Blaine Wednesday, December 01, 2010 1:43:56 PM
Updated: 4:51 p.m. ET

Call it a Santa Claus rally, or a Hanukkah rally for the first day of the Jewish Festival of Lights.

Fact is, stocks enjoyed their biggest rally since September as economic report after economic report points toward a domestic economy gaining strength.

One report showed a better-than-expected gain in private-sector employment. The Institute for Supply Management's report on November manufacturing suggests the sector is holding its own. Auto sales were generally bullish, with buyers opting for large SUVs and pickups.

The Federal Reserve's Beige Book report described an economy that's showing modest but broad improvement. The New York region, the Midwest and the middle Atlantic states appeared to show the most strength.

http://articles.moneycentral.msn.com/In ... ae&_nwpt=1