US stocks rally on growth data, Facebook fever
NEW YORK—US stocks scored gains Wednesday after manufacturing data showed growth and the market buzzed with speculation that Facebook would soon announce its market debut.
The Dow Jones Industrial Average rose 83.55 points (0.66 percent) to close at 12,716.46, well off session highs.
The S&P 500, a broader measure of the markets, advanced 11.67 points (0.89 percent) to 1,324.08.
The tech-heavy Nasdaq outperformed, adding 34.43 points (1.22 percent) to 2,848.27.
“The US equity markets posted solid gains today, as strong manufacturing data out of China and Europe provided an early morning spark, while a subsequent report of acceleration in US (manufacturing) activity helped push stocks further into the green,” Charles Schwab analysts said.
The ISM manufacturing index rose to 54.1 percent in January from 53.1 percent in December.
Wall Street was on tenterhooks amid reports that Facebook was poised to file papers for an initial public offering, seeking to raise at least $5 billion.
Hard-disk drive giant Seagate Technology soared 20.8 percent on the Nasdaq after reporting a huge jump in fourth-quarter profit.
Amazon shares plunged 7.7 percent after it revealed a steep earnings drop in the quarter.
Pfizer rose 0.6 percent. The pharma firm recalled one million packets of birth control pills over a packaging error that could put women at risk of unintended pregnancy.
Shares in NYSE Euronext fell 0.5 percent after European Union authorities ruled against approval of the proposed merger with Deutsche Boerse.
Bond prices fell. The yield on the 10-year Treasury rose to 1.85 percent from 1.80 percent on Tuesday, while the 30-year climbed to 3.02 percent from 2.93 percent.
Bond prices and yields move in opposite directions.
