US Stocks Rise on Economic Reports 12/01 09:52
The latest move in Wall Street's jolting roller-coaster ride is back up, as
stocks, oil and bond yields climb in Wednesday morning trading to recover much
of their sharp losses from the day before.
NEW YORK (AP) -- The latest move in Wall Street's jolting roller-coaster
ride is back up, as stocks, oil and bond yields climb in Wednesday morning
trading to recover much of their sharp losses from the day before.
The S&P 500 was 1.5% higher following some better-than-expected readings on
the U.S. economy. It's the latest dizzying move for Wall Street's benchmark,
which sank 2.3% on Friday for its worst loss since February, only to then rise
1.3% and then fall 1.9%.
The wild movements are partly the result of investors struggling to handicap
how much damage the newest coronavirus variant will do to the economy. With few
concrete answers about omicron, investors have been groping and sending markets
back and forth as minor clues dribble out.
Another weight dropped on Wall Street Tuesday when the head of the Federal
Reserve said that it may halt its immense support for financial markets sooner
than expected given the persistently high inflation sweeping the world.
But since climbing out of its early 2020 collapse caused by the first wave
of COVID-19, one hallmark of the stock market's powerful run has been the
continued willingness by bargain-hunting investors to buy following any dip in
prices. That lasting habit has helped the S&P 500 set 66 all-time highs so far
in 2021, the second-most on record for a year, according to S&P Dow Jones
It also helped the Dow Jones Industrial Average to rise 358 points, or 1%,
to 34,841, as of 10:09 a.m. Eastern time. The Nasdaq composite was 1.5% higher.
Longer-term Treasury yields also recovered some of their sharp drops from
the day before triggered by worries about slowing economic growth.
The yield on the 10-year Treasury rose to 1.49% from 1.44% late Tuesday,
when it fell from 1.52%.
Some better-than-expected data on the economy helped. A report from the
Institute for Supply Management showed that growth in the U.S. manufacturing
sector accelerated a touch faster last month than economists expected.
A separate report from payroll processor ADP said non-government employers
hired more people in November than economists expected. That could raise
expectations for Friday's more comprehensive jobs report from the U.S.
government, though the ADP report doesn't have a perfect track record
A stronger economy would burn more fuel, and crude oil prices regained some
of their sharp recent losses. Benchmark U.S. crude rose 3% to $68.18 per barrel
after briefly dropping below $65 the day before. Brent crude, the international
standard, rose 2.9%.
Stocks also rose across Europe and Asia amid the uncertainty about how
powerful omicron's punch will be.
Japan's Nikkei 225 rose 0.4% even as the country further tightened
restrictions by asking international airlines to stop taking new reservations
for all flights heading there until the end of the year.
South Korea's Kospi jumped 2.1%, while Germany's DAX returned 1.9%.
A measure of fear on Wall Street also eased, falling 13%. But the VIX, which
shows how worried investors are bout upcoming drops for the S&P 500, is still
well above where it was before omicron walloped markets worldwide after