Dow propelled to biggest jump in a month
A trader from Knight Capital Group Inc. works on the floor of the New York Stock Exchange Monday. (Oct. 15, 2012) Credit: Bloomberg News
Inflation is low, earnings are high, investors are happy.
Stocks shot higher Tuesday, giving the market its biggest gain in a month. Results at Mattel, Goldman Sachs, and Johnson & Johnson were all above expectations.
It was the second day of broad gains following a down week last week. Investors had been worried headed into the third-quarter earnings season that corporate profits wouldn't be good enough to justify the run-up in stocks in recent months.
The Labor Department said Tuesday consumer prices rose just 0.1 percent last month, not counting food and energy costs. And gasoline prices have come down since then. Low inflation leaves consumers with more money to spend, and leaves the Federal Reserve free to continue its efforts to boost the economy.
"The picture of the economy is one that's still proving to be resilient to a lot of the problems that investors are worried about," said Gary Thayer, chief macro strategist for Wells Fargo Advisors.
The Dow Jones industrial average rose 127.55 points to close at 13,551.78, its biggest gain since Sept. 13.
The Standard & Poor's 500 index rose 1.03 percent to 1,454.92. The Nasdaq composite index rose 1.21 percent to 3,101.17.-- AP
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.
