Stocks Jump in First Hour of Trading
From the Associated Press:
Stocks surged Tuesday, lifting the Dow Jones industrial average more than 120 points as strong earnings from General Motors Corp. and Sun Microsystems Inc. helped Wall Street extend its recovery from last week's plunge.
Investors were also eager to buy back into the stock market after economic snapshots suggested tame inflation and rising consumer confidence.
The market seemed to be focusing on the good news and ignoring the negative. Though the Commerce Department's year-over-year core personal consumption expenditures, a closely watched inflation measure, was up 1.9 percent in June and within the Federal Reserve's comfort zone, the data also showed that personal spending rose 0.1 percent, its slowest pace in nine months.
And as a report from the Conference Board indicated that consumer confidence jumped to a six-year high, the market looked past a dip in June construction spending, and the July Chicago purchasing manager's index, which indicated weaker-than-expected growth. The report is considered a precursor to the Institute for Supply Management's national manufacturing index, which will be released Wednesday.
Investors remained optimistic after quarterly results from server and software maker Sun Microsystems and automaker GM, which both posted better-than-expected profits.
In the first hour of trading, the Dow Jones industrial average rose 128.03, or 0.96 percent, to 13,486.34.
Broader stock indicators also rose. The Standard & Poor's 500 index was up 13.65, or 0.93 percent, at 1,487.56, and the Nasdaq composite index was up 22.30, or 0.86 percent, at 2,605.58.
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