Tue, June 15, 2010
Business > Markets

Wall Street rises with euro and data

2010-06-15 15:29:25 GMT2010-06-15 23:29:25 (Beijing Time)  SINA.com

Stocks rose on Tuesday as the euro strengthened after successful European debt auctions and U.S. data showed inflation remained under control.

The euro, a yardstick used by equity investors to gauge risk appetite, rose above $1.23 to its best level since June 3, even after a survey showed German analyst and investor sentiment fell more than expected.

Industrial and technology sectors, with high exposure to Europe, led the U.S. advance, with planemaker Boeing Co (BA.N) up 3 percent to $66.78, while Caterpillar Inc (CAT.N) added 2 percent to $62.17.

The move is "all related to the euro. It determines how the stock market behaves," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.

"On a day-to-day basis, a trade keying off on where the euro is seems to be the only trade that works. Until that measure stops working, they'll keep doing that trade. It doesn't inspire confidence," he said.

New York state manufacturing continued to grow in June although employment fell sharply, while in a separate report U.S. import prices posted their largest decline in nearly a year in May, bolstering views of tame inflation and low interest rates.

The Dow Jones industrial average (.DJI) gained 98.17 points, or 0.96 percent, to 10,289.06. The Standard & Poor's 500 Index (.SPX) rose 11.53 points, or 1.06 percent, to 1,101.16. The Nasdaq Composite Index (.IXIC) added 29.84 points, or 1.33 percent, to 2,273.80.

Indexes had fallen after U.S. homebuilder sentiment fell by the sharpest amount since the height of the financial crisis as a popular homebuyer tax credit expired.

Best Buy Co (BBY.N) dropped 6.5 percent to $38.44 after its quarterly profits missed estimates.

Spain and Belgium sold government debt on healthy demand and Ireland issued bonds in auctions that soothed investor worries about the euro zone's debt crisis.


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