Stocks rise after Berlusconi vows to leave
Traders works on the floor of the New York Stock Exchange this week. Stocks turned higher Tuesday once investors learned Italian Prime Minister Silvio Berlusconi promised to resign once a new budget was passed. (Nov. 7, 2011) Credit: AP
Stocks turned higher yesterday once investors got the news they had been hoping for: Italian Prime Minister Silvio Berlusconi promised to resign once a new budget was passed.
The yield on the 10-year Italian government bond spiked close to 7 percent, a sign that markets are questioning the country's ability to pay its debt. Unlike Greece, Portugal or Ireland -- all of which received financial lifelines -- Italy has too much debt to be rescued by its European neighbors.
The Dow Jones industrial average rose 101.79 points, or 0.84 percent, to close at 12,170.18. Manufacturer 3M Co. gained 2.7 percent, the most of the 30 stocks in the average.
The Standard & Poor's 500 rose 14.80, or 1.17 percent, to 1,275.92. Financial companies posted the strongest gains. Regions Financial Corp. jumped 5.3 percent. Wells Fargo & Co. climbed 4.4 percent. The Nasdaq composite rose 32.24, or 1.20 percent, to 2,727.49.
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