NEW YORK: Global stocks jumped on Tuesday, Feb 1 in a broad rally spurred by hopes of further economic recovery after strong factory data worldwide, while safe-haven assets such as bonds fell as worries about unrest in Egypt ebbed.
U.S. benchmarks the Dow and S&P 500 closed at their highest levels since June 2008 and looked poised for further gains as corporate earnings continue to surprise on the upside.
The strong corporate picture and signs of an improving economy eased investors' fears about possible economic fallout from the political turmoil in Egypt, where President Hosni Mubarak announced he will not seek re-election in September after more than 1 million people gathered peacefully across the country to demand that he step down.
Investors capitalized on last week's pullback, sending the Dow to close over the psychologically important level of 12,000 for the first time since June 2008 and the S&P 500 to close above 1,300 for the first time since August 2008.
"While skeptics might attribute the recent ascent in stock prices to animal spirits, we believe that fundamentals are the real story behind the market's success," said Jonathan Golub, strategist at UBS in New York.
Shares of Pfizer Inc gained 5.5 percent on better-than-expected earnings and revenue, while United Parcel Service Inc rose 4.1 percent after profit beat estimates and it forecast record-high earnings in 2011.
The Dow Jones industrial average closed up 148.23 points, or 1.25 percent, at 12,040.16. The Standard & Poor's 500 Index rose 21.47 points, or 1.67 percent, at 1,307.59. The Nasdaq Composite Index added 51.11 points, or 1.89 percent, at 2,751.19.
Global stocks as measured by MSCI's all-country world index jumped 1.6 percent.
Stocks in Tokyo were poised to open slightly lower, with the March futures contract that trades in Chicago for the Nikkei 225 down 5 points at 10,330.
The euro hit a 2-1/2-month high above $1.38, boosted by an acceleration of factory activity in the euro zone, even as analysts said risk appetite could fade if worries resurface over Europe's ability to manage its debt crisis.
The euro rose as high as $1.3844, its highest since early November, with gains accelerating after it broke above resistance at $1.3786.
The dollar, which benefited from a safe-haven bid late last week when protests in Egypt intensified, fell broadly as risk appetite returned, hitting a four-week low against the yen at 81.33 yen
The CBOE Volatility index, often called Wall Street's fear index, fell for a second day, down almost 10 percent. The cost of five-year credit-default swaps on U.S. debt also dipped in a sign of increased confidence.
Oil prices in London rose, pushing above $102 a barrel as disruptions at Egyptian ports and Jordan's government shake-up kindled concerns about unrest in the region. But U.S. crude prices fell in choppy trade ahead of weekly reports expected to show domestic crude inventories rose last week.
In London, ICE Brent crude for March rose 73 cents to settle at $101.74 a barrel.
U.S. crude oil for March delivery fell $1.42 to settle at $90.77 a barrel.
U.S. Treasury debt prices fell for a second day as investors unwound flight-to-safety purchases that were spurred by fears of contagion from the Egyptian unrest.
"While the political unrest in Egypt continues, there does not appear to be any significant impact on U.S. economic conditions currently, thus the market's attention turned to the economic data," said Sharon Stark, chief fixed income strategist at Sterne Agee in Birmingham, Alabama.
The benchmark 10-year U.S. Treasury note was down 16/32 in price to yield 3.44 percent.
U.S. gold futures ended up as a weaker dollar stirred buying interest, but it failed to rally further after the U.S. manufacturing data and relative peace in Egypt dampened the precious metal's safe-haven appeal.
Gold futures for deliver in April settled up $5.8 at $1,340.30 an ounce.
Earlier in Asia, Japan's Nikkei share index rose 0.4 percent and the MSCI index of Asian shares outside of Japan rose 0.4 percent. - Reuters
U.S. benchmarks the Dow and S&P 500 closed at their highest levels since June 2008 and looked poised for further gains as corporate earnings continue to surprise on the upside.
The strong corporate picture and signs of an improving economy eased investors' fears about possible economic fallout from the political turmoil in Egypt, where President Hosni Mubarak announced he will not seek re-election in September after more than 1 million people gathered peacefully across the country to demand that he step down.
Investors capitalized on last week's pullback, sending the Dow to close over the psychologically important level of 12,000 for the first time since June 2008 and the S&P 500 to close above 1,300 for the first time since August 2008.
"While skeptics might attribute the recent ascent in stock prices to animal spirits, we believe that fundamentals are the real story behind the market's success," said Jonathan Golub, strategist at UBS in New York.
Shares of Pfizer Inc gained 5.5 percent on better-than-expected earnings and revenue, while United Parcel Service Inc rose 4.1 percent after profit beat estimates and it forecast record-high earnings in 2011.
The Dow Jones industrial average closed up 148.23 points, or 1.25 percent, at 12,040.16. The Standard & Poor's 500 Index rose 21.47 points, or 1.67 percent, at 1,307.59. The Nasdaq Composite Index added 51.11 points, or 1.89 percent, at 2,751.19.
Global stocks as measured by MSCI's all-country world index jumped 1.6 percent.
Stocks in Tokyo were poised to open slightly lower, with the March futures contract that trades in Chicago for the Nikkei 225 down 5 points at 10,330.
The euro hit a 2-1/2-month high above $1.38, boosted by an acceleration of factory activity in the euro zone, even as analysts said risk appetite could fade if worries resurface over Europe's ability to manage its debt crisis.
The euro rose as high as $1.3844, its highest since early November, with gains accelerating after it broke above resistance at $1.3786.
The dollar, which benefited from a safe-haven bid late last week when protests in Egypt intensified, fell broadly as risk appetite returned, hitting a four-week low against the yen at 81.33 yen
The CBOE Volatility index, often called Wall Street's fear index, fell for a second day, down almost 10 percent. The cost of five-year credit-default swaps on U.S. debt also dipped in a sign of increased confidence.
Oil prices in London rose, pushing above $102 a barrel as disruptions at Egyptian ports and Jordan's government shake-up kindled concerns about unrest in the region. But U.S. crude prices fell in choppy trade ahead of weekly reports expected to show domestic crude inventories rose last week.
In London, ICE Brent crude for March rose 73 cents to settle at $101.74 a barrel.
U.S. crude oil for March delivery fell $1.42 to settle at $90.77 a barrel.
U.S. Treasury debt prices fell for a second day as investors unwound flight-to-safety purchases that were spurred by fears of contagion from the Egyptian unrest.
"While the political unrest in Egypt continues, there does not appear to be any significant impact on U.S. economic conditions currently, thus the market's attention turned to the economic data," said Sharon Stark, chief fixed income strategist at Sterne Agee in Birmingham, Alabama.
The benchmark 10-year U.S. Treasury note was down 16/32 in price to yield 3.44 percent.
U.S. gold futures ended up as a weaker dollar stirred buying interest, but it failed to rally further after the U.S. manufacturing data and relative peace in Egypt dampened the precious metal's safe-haven appeal.
Gold futures for deliver in April settled up $5.8 at $1,340.30 an ounce.
Earlier in Asia, Japan's Nikkei share index rose 0.4 percent and the MSCI index of Asian shares outside of Japan rose 0.4 percent. - Reuters
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