US stocks rally after strong housing report
US stocks Wednesday finished with solid gains as a strong housing report helped equities regain territory after losses earlier this week. AP
NEW YORK–US stocks Wednesday finished with solid gains as a strong housing report helped equities regain territory after losses earlier this week.
The Dow Jones Industrial Average jumped 154.19 points (0.90 percent) to 17,210.06.
The broad-based S&P 500 rose 15.53 (0.78 percent) to 1,998.30, while the tech-rich Nasdaq Composite Index advanced 46.53 (1.03 percent) to 4,555.22.
The Commerce Department reported that sales of new single-family houses surged 18 percent in August to an annual rate of 504,000, their fastest pace in more than six years.
The housing report “certainly helped this morning,” said Michael James, managing director of equity trading at Wedbush Securities.
“As has proven to be the case for the last 18 months, every pullback lasts a few days and people start buying stocks,” James said.
Apple fell 0.9 percent as it halted the update for its iOS software powering the iPhone after users complained of bugs, including one that disabled cellular service. Buyers have also complained of bends in the bodies of the new iPhone 6 and iPhone 6 Plus smartphones when carried in trouser pockets.
Home-goods retailer Bed Bath & Beyond shot up 7.4 percent as its full-year earnings forecast came in at $5.00-$5.08, compared with analyst expectations of $5.01. Comparable sales in the second quarter rose 3.4 percent.
Wal-Mart Stores gained 2.0 percent after it unveiled a venture to offer no-fee electronic checking accounts aimed at customers without traditional bank accounts. Green Dot, a provider of pre-paid debit cards and Wal-Mart’s partner in the service, shot up 24.4 percent.
Gilead Sciences gained 3.2 percent after announcing successful clinical trials of its tenofovir alafenamide treatment for HIV. The biotech company plans to submit regulatory applications for the medications in the US and European Union in the fourth quarter of 2014.
Other biotech companies, including Biogen (+4.2 percent) and Celgene (+3.3 percent), also rose.
Valeant Pharmaceuticals International bolted 6.9 percent higher as it said it expects third-quarter earnings and revenues to be above prior forecasts. The company also released a letter to Allergan offering to “take the temperature down” over its unsolicited offer to buy the Botox maker.
Allergan, which has fought the deal, rose 4.2 percent.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.57 percent from 2.54 percent Tuesday, while the 30-year increased to 3.28 percent from 3.25 percent. Bond prices and yields move inversely.
