Wall Street jumps on new home sales, corporate earnings

08:01, July 27, 2010      

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Wall Street jumped Monday on new home sales and corporate earnings, all major indexes rose around 1 percent at the closing.

According to the Commerce Department, new home sales increased 23.6 percent to a seasonally adjusted annual rate of 330,000 last month, up from a downwardly revised 267,000 in May.

The June sales pace is the second slowest on record, but still slightly better than what economists were expecting.

Monday's move came after a late-session surge on Friday as the European regulators released the results of a series of stress tests to determine the health of the continent's banking sector after European market closed. The results were much better than analysts had expected, though some investors still doubted the transparency and credibility of the tests.

Stocks also rallied as more companies reported strong second- quarter results and improved outlooks for the coming quarters.

FedEx, which is seen as an economic bellwether, said it was seeing better than expected growth in its overnight and ground delivery businesses.

The Dow Jones industrial average gained 100.81 points, or 0.97 percent, to 10,525.43. The Standard & Poor's 500 index rose 12.35 points, or 1.12 percent, to 1,115.01 while the Nasdaq was up 26.96 points, or 1.19 percent, to 2,296.43.

Crude prices traded flat after the new home sales report. Light, sweet crude for September delivery settled unchanged at 78.98 U.S. dollars on the New York Mercantile Exchange. In London, Brent crude added 5 cents to settle at 77.50 dollars a barrel on the ICE Futures exchange.

The euro rose against the greenback on New York markets. The euro rose to 1.2989 dollars on Monday from 1.2922 dollars on Friday.

Source: Xinhua


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