Yesterday US stocks recorded the largest one-day rise in five weeks amid auto makers data and technology shares gains as the economy continues to recover.
The Dow Jones Industrial Average rose 96.91 points, or 0.65%, to 14930.87. That was the biggest point and percentage gain since Aug. 1. The S&P 500-stock index added 13.31 points, or 0.81%, to 1653.08. The benchmark index finished 3.3% off the years high, but up 15.9% for the year.
The Federal Reserves “beige book” survey of regional economic activity showed the US economy expanded at a “modest to moderate” pace in July and August, led by consumer spending on cars and housing. The beige book is used to inform members of the Feds Federal Open Market Committee of changes in the economy since the last meeting.
Strength in spending on automobiles was seen by Ford Motor, which advanced 57 cents, or 3.5%, to $16.91, and General Motors, which gained $1.71, or 5%, to $35.85 Wednesday, after Ford reported its best retail-sales month in seven years and GM said August auto sales jumped 14.7%.”Thats a plus for the economy and the market in general if consumers are willing to spend and US-based car companies are able to do more than just participate these days,” he said.
In corporate news, Intel led gains in 26 of 30 blue-chip stocks after the semiconductor company unveiled new data-center processors.
Shares of LinkedIn fell 7.20, or 2.9%, to $238.93 after the professional social network announced a plan to sell at least $1 billion worth of common stock to the public.
Apple rose 10.11, or 2.1%, to $498.69, after Cantor Fitzgerald started coverage of the company with a “buy” rating and $777 price target, saying the stock has been “challenged this year” but is now “in the midst of a recovery.”.
Micron Technology rose 74 cents, or 5.3%, to $14.75, and SanDisk increased 1.83, or 3.3%, to $57.14, after a major fire forced rival chip maker SK Hynix to suspend operations at a factory in China.
Microsoft fell for a third session in a row, dropping 68 cents, or 2.1%, to $31.20, following its $7 billion deal with Nokia. The company this week announced it would buy Nokias phone business in an attempt to better compete with Apple and Google in the smartphone market. Nokia was up for a second day, adding 21 cents, or 4.1% to $5.33.
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