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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

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.

By Frank Ahrens  |  June 10, 2010; 4:19 PM ET
Categories:  Data , Wall Street  
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Next: May retail sales unexpectedly fall


"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"

Question: Does anybody really know what's going on in the Chinese economy?


Posted by: greg3 | June 10, 2010 10:13 AM | Report abuse

The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 26% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as president. Forty-three percent (43%) Strongly Disapprove, giving Obama a Presidential Approval Index rating of -17

Overall, 46% of voters say they at least somewhat approve of the president's performance. Fifty-three percent (53%) disapprove.

Posted by: screwjob16 | June 10, 2010 10:27 AM | Report abuse

Lets see the Euro Collapses vs. the dollar which China is pegged to, yet we are to believe that Chinese exports will continue to do just fine as they soar in price in Euro terms so the markets roar. Power of greed over reality (for a while anyway)

Posted by: shark89 | June 10, 2010 10:30 AM | Report abuse

As Obama fails, the economy succeeds....

Once Barry becomes completely impotent in November, the economy will enjoy a little more growth. When Obama is voted out of office in 2012, our long national nightmare will be over and the economy will begin to recover in earnest.

Posted by: Jerzy | June 10, 2010 10:58 AM | Report abuse

"When Obama is voted out of office in 2012, our long national nightmare will be over and the economy will begin to recover in earnest."

Of course the economy went to hell before he was even elected, so I'm sure it's all his fault.

Posted by: mencik | June 10, 2010 11:24 AM | Report abuse

Stocks open with a roar while Fed Bernanke says we must address looming budget challenge of U.S. deficit problems and Obama pledges millions in aid to Palestine leader Mahmoud Abbas. The Fed warns U.S. is heading for European-style debt crisis and Obama keeps on spending by pledging money to Palestine.

Obama’s continued deficit spending is similar to the Gulf the oil spill. No one can stop either one of them. However, the oil reservoir still contains a lot of oil beneath the earth’s layers while Obama has “spilled out” all the federal U.S. tax money.

Posted by: klausdmk | June 10, 2010 11:25 AM | Report abuse

"When Obama is voted out of office in 2012, our long national nightmare will be over and the economy will begin to recover in earnest."

Of course the economy went to hell before Obama was even elected. Obviously the bad economy is his fault.

Posted by: mencik | June 10, 2010 11:33 AM | Report abuse

Thankfully there cannot be a " double dip recession ". We never exited the first dip.

Keep your eyes open for Stimulus 2.0 !!

It's not like we'll ever be able to pay off the bone crushing debt anyway. Pedal to the medal.

Posted by: bandcyuk | June 10, 2010 12:02 PM | Report abuse

To be brutally blunt, your article was asinine and you know it. Hedge funds and assorted other program traders (HFT, flash traders,dark pools) pumped up oil prices, the euro and hit the buy button on S&P futures which precipitated a minor short squeeze! There wasn't one shred of substantive economic news to justify a 200 point jump in the Dow (2%) on less than 85 million shares(NYSE)in the first ten minutes of trading EXCEPT WHAT THEY EUPHEMISTICALLY CALL TECHNICAL TRADING. Real investors would be less generous and would call it for what it was MANIPULATION!

Don't you think Mr. Ahrens that it's about time for business journalists to actually report what's really happening in our "ersatz" (read phony) markets rather than journalistic fiction and Wall Street propaganda!

Posted by: dgward44 | June 10, 2010 12:17 PM | Report abuse

They really need to move the Stock Exchange to Las Vegas where it can exist as what it truely is: A gambling meca with odds that are even worse than Las Vegas.

Posted by: maphound | June 10, 2010 12:29 PM | Report abuse

Can't everyone see how the bankers and brokers are making tons of money off timing the market with short term buying and selling at the expense of our economy?

This is not "free market" anything and is a huge argument for introducing a tax on every single Wall Street exchange. But that's another one that will have to be shoved down the throats of congressional Republicans!

Posted by: walden1 | June 10, 2010 12:34 PM | Report abuse

China's exports increased by 48% and THAT is the whole reason for Wall Street's celebration. The Financial Times reports the economic outlook for the U.S. as bleak and likely to get worse. Real wages are declining, real unemployment is increasing, and the U.S. has a genuine risk of collapsing. The free trade folly of this and the last three Administrations, the predations of Wall Street and corporations, has crossed boundary of treason. This is all going to end in a cycle of violence and repression, anarchy, war, and human suffering like nothing ever witnessed in modern history.

Posted by: mibrooks27 | June 10, 2010 2:09 PM | Report abuse

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