NEW YORK: The Dow Jones Industrial Average closed above 12,000 for the first time since June 2008, after American and Chinese manufacturing expanded and United Parcel Service Inc beat analysts' earnings estimates.
UPS, the package-delivery company considered a proxy for economic growth, advanced 4.2%. The S&P 500 rose 1.7%, the most since December 1, to 1,307.59. The benchmark gauge for US equities has rallied 2.5% in the past two days, erasing the January 28 slump that was driven by Egyptian riots. The Dow added 148.23 points, or 1.3%, to 12,040.16.
The S&P 500 has risen 4% this year, extending a 13% advance in 2010, on government stimulus measures and higher-than-estimated corporate profits. About 74% of the 204 companies that reported earnings since January 10 topped analysts' projections, according to data compiled by Bloomberg.
Shares extended gains on Tuesday after the ISM's factory index rose to 60.8 in January, beating the median economist projection of 58.
US gross domestic product growth accelerated to 3.2% in the fourth quarter from 2.6% during the prior three months, the Commerce Department said on January 28. On Monday, reports showed American businesses expanded at the fastest pace since 1988 and consumer spending beat economist estimates.
The last time the S&P 500 closed above 1,300 was in August 2008.
The Dow Jones Transportation Average of 20 stocks had the biggest gain in two months, rallying 2%.
An index of raw-materials producers in the S&P 500 added 2.8%, the biggest gain among 10 industries.
Commodities beat stocks for three months, the longest stretch since June 2008. The S&P GSCI Total Return Index of 24 raw materials gained 3.1% in January and rose for a fifth month, the longest streak since 2004, according to data compiled by Bloomberg. The MSCI All-Country World Index of equities climbed 1.6% including dividends. The Global Broad Market Index for corporate and government bonds lost 0.3%, Bank of America Merrill Lynch data show.
UPS, the package-delivery company considered a proxy for economic growth, advanced 4.2%. The S&P 500 rose 1.7%, the most since December 1, to 1,307.59. The benchmark gauge for US equities has rallied 2.5% in the past two days, erasing the January 28 slump that was driven by Egyptian riots. The Dow added 148.23 points, or 1.3%, to 12,040.16.
The S&P 500 has risen 4% this year, extending a 13% advance in 2010, on government stimulus measures and higher-than-estimated corporate profits. About 74% of the 204 companies that reported earnings since January 10 topped analysts' projections, according to data compiled by Bloomberg.
Shares extended gains on Tuesday after the ISM's factory index rose to 60.8 in January, beating the median economist projection of 58.
US gross domestic product growth accelerated to 3.2% in the fourth quarter from 2.6% during the prior three months, the Commerce Department said on January 28. On Monday, reports showed American businesses expanded at the fastest pace since 1988 and consumer spending beat economist estimates.
The last time the S&P 500 closed above 1,300 was in August 2008.
The Dow Jones Transportation Average of 20 stocks had the biggest gain in two months, rallying 2%.
An index of raw-materials producers in the S&P 500 added 2.8%, the biggest gain among 10 industries.
Commodities beat stocks for three months, the longest stretch since June 2008. The S&P GSCI Total Return Index of 24 raw materials gained 3.1% in January and rose for a fifth month, the longest streak since 2004, according to data compiled by Bloomberg. The MSCI All-Country World Index of equities climbed 1.6% including dividends. The Global Broad Market Index for corporate and government bonds lost 0.3%, Bank of America Merrill Lynch data show.
source : Bloomberg
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