Wed, June 27, 2012
NEW YORK, June 27 (Xinhua) -- U.S. stocks rallied on Wednesday as U.S. economic data came in positive.
The Dow Jones industrial average gained 92.34 points, or 0.74 percent, to 12,627.01. The Standard & Poor's 500 was up 11.86 points, or 0.90 percent, to 1,331.85. The Nasdaq Composite Index rose 21.26 points, or 0.74 percent, to 2,875.32.
U.S. durable goods orders rose 1.1 percent in May compared with April, better than expected, according to the Commerce Department. It indicated that U.S. business activities were picking up steam.
The National Association of Realtors said the pending home sales increased sharply by 5.9 percent in May after declining 5.5 percent in April. The pending home sales index hit 101.1, the highest level in two year, adding to the good news this week on the housing sector, boosting hopes for an improved housing market.
But traders still remained nervous about European debt crisis. Investors' hopes were fading ahead of the two-day European Summit starting on Thursday.
Currently, markets were awaiting no firm policy solution for the debt crisis as the attitude of German Chancellor Angela Merkel upset investors. Merkel said total debt liability would not be shared in her lifetime, giving little support to Italian and Spanish pleas for immediate action.
Italy's six-month borrowing costs rose to 2.957 percent to their highest since December, piling pressure on the government.
On the other markets, crude prices rose on U.S. inventories declines as well as continuing Norway oil worker strike. U.S. crude benchmark WTI has returned back above 80 dollars a barrel and Brent crude closed at 93.50 dollars a barrel.
The rise in oil prices also helped the rally in energy stocks. Energy and financial sectors were among the biggest winners on Wednesday.
The U.S. dollar rose against major currencies, while the euro weakened ahead of the summit. The dollar index rose 0.271 to 82. 810.
Gold rose to settle at 1,578 dollars an ounce as capital flew into the market ahead of the EU Summit.
