Dow jumps 213 points as US stocks snap losing streak
Wall Street stocks jumped Wednesday following solid US economic data, joining European equity markets higher and ending a five-day losing streak. AP FILE PHOTO
NEW YORK–Wall Street stocks jumped Wednesday following solid US economic data, joining European equity markets higher and ending a five-day losing streak.
The Dow Jones Industrial Average surged 212.88 points (1.23 percent) to 17,584.52.
The broad-based S&P 500 gained 23.29 (1.16 percent) at 2,025.90, while the tech-rich Nasdaq Composite Index bolted 57.73 (1.26 percent) higher to 4,650.47.
The US trade deficit shrank sharply to its smallest size in nearly a year, while the private sector added 241,000 jobs in December, up from 227,000 in November.
Equity markets in Britain, France and Germany all rose after weak eurozone inflation data sparked speculation the European Central Bank will enact additional stimulus measures.
Heading into Wednesday, the S&P 500 had lost 4.2 percent in the prior five sessions.
“We were pretty oversold,” said Michael James, managing director of equity trading at Wedbush Securities.
Department-store chain J.C. Penney jumped 20.3 percent as comparable sales for the key holiday shopping period in November and December rose 3.7 percent compared with a year ago.
The news also lifted other retail stocks. Dow member Wal-Mart Stores rose 2.7 percent, Macy’s gained 4.1 percent and Target advanced 3.8 percent.
Pharmaceutical stocks gained. Dow member Merck rose 2.1 percent, while biotech firms Biogen and Gilead Sciences advanced 5.6 percent and 1.9 percent, respectively.
Arena Pharmaceuticals soared 76.2 percent after it released positive clinical data for a treatment for autoimmune disease. The results will enable the company to move into phase-two trials for some ailments.
Agricultural products giant Monsanto rose 1.3 percent after fiscal first-quarter earnings came in at 47 cents per share, above the 35 cents projected by analysts.
Chipmaker Micron Technology lost 2.3 percent after it offered a mixed outlook for the upcoming quarter. Morgan Stanley trimmed its earnings forecast for the second quarter by 10 cents to 86 cents per share based on Micron’s latest data.
Bond prices fell. The yield on the 10-year US Treasury rose to 1.96 percent from 1.94 percent Tuesday, while the 30-year advanced to 2.52 percent from 2.50 percent. Bond yields and prices move inversely.
