Stocks rally to third best day of the year, avoid last-hour selloff
UPDATED at 4:19 p.m.:
Stocks managed to hold onto impressive gains all day long by avoiding their customary last-hour sell-off, and all three major indices closed up nearly 3 percent.
The Dow closed up 2.8 percent 10,172.53. All but one of the 30 Dow stocks closed higher, with only Cisco losing ground. The Dow closed above 10,000 today for the first time this week. The Dow gained nearly 300 points on the day and has erased most of its June losses. After today's trading, the Dow is down four-tenths of 1 percent for the month. It is still down 2.5 percent for the year.
The broader S&P 500 closed up 3 percent 1,086.84.
The tech-heavy Nasdaq closed up 2.8 percent at 2,218.71
It was the third-best day of the year for stocks, which were pushed higher by energy companies. Embattled Gulf-oil-spill giant BP rallied off of yesterday's 16 percent drop and closed up nearly 13 percent at $32.92. Since the late-April Deepwater Horizon oil rig explosion, however, BP stock has lost half of its value.
The markets are now positive for the week.
Oil closed up nearly 2 percent at more than $75 per barrel. Gold lost nearly 1 percent, as investors regained confidence in stocks.
Stocks extend rally
11:07 a.m.: Stocks have extended their early rally, with all three major indices now up 2 percent.
The Dow is up 2.3 percent, up well over the 10,000 barrier.
The broader S&P 500 is up 2.7 percent.
The tech-heavy Nasdaq is up 2 percent.
Advancers outnumber decliners by 11 to 1. Even embattled oil giant BP is trying to bounce back from its epic 16-percent drop yesterday, with a 13-percent gain today.
CNBC is reporting that the SEC could roll out its individual-stock circuit breakers on a limited basis as early as today, a measure designed to try to prevent another flash crash like we had in May.
The circuit breaker would kick in if a stock lost 10 percent of its value in five minutes of trading, and trading would be halted for five minutes while everyone tried to figure out what was going on.
Stocks open with a roar
9:42 a.m.: Stocks roared out of the gate this morning, as the Dow zoomed back up above the 10,000 level and all three major indices showed strong gains.
The question is, can this hold? Stocks had a nice rally going all day yesterday until the fateful 3 p.m. hour came and the typical sell-off began.
The Dow is up 1.8 percent.
The broader S&P 500 is up 1.8 percent.
The tech-heavy Nasdaq is up 1.4 percent.
The reason for the surge? A report out this morning showed that, so far, China's economy has not been hurt by Europe's debt problems. The 27-nation EU is China's largest trading partner, so that's good news. It could also be good news for the United States, as Europe accounts for 25 percent of all U.S. export-buying.
Also, new jobless claims filed last week dropped slightly, but the drop is so low as to be immaterial. New jobless claims remain stuck stubbornly high. So I'm going with China on this one.
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