U.S. stocks extend rally to third day on economic hopes

15:14, September 11, 2010      

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The U.S. stocks extended its rally to the third straight day on Friday as investors started to believe the economic recovery was not as weak as they had feared.

The Dow Jones industrial average gained 47.53 points, or 0.46 percent, to 10,462.77. The Standard &Poor's 500 index rose 5.37 points, or 0.49 percent, to 1,109.55 and the Nasdaq was up 6.28 points, or 0.28 percent, to 2,242.48.

The recent rally in Wall Street was fueled by a string of upbeat economic reports which showed the recovery in the United States seemed better than expected. Major indexes only fell once in September's seven sessions.

A government report released on Friday showed wholesale inventories surged by the largest amount in two years, adding to hopes that consumer spending might be soon picking up.

According to the Commerce Department, inventories jumped 1.3 percent in July, more than three times of the 0.4-percent increase analysts had anticipated, showing that wholesalers are still confident in the recovery.

Meanwhile, sales at distributors climbed 0.6 percent after two straight months of drops, which was also much better than market expectation.

In addition, data from China and Japan also helped lift hopes about the global economy.

China's trade surplus in August dropped compared with the previous month, mainly due to a surprisingly large increase in imports. The imports surged 35.2 percent from a year earlier, signaling that domestic demand had rebounded despite the government's efforts to rein in the pace of economic growth.

Japan said on Friday its economy grew more than previously thought in the second quarter although the strong yen remains an ever-present threat. The news eased concerns for a halt in the country's fragile economic recovery.

Energy sector led the gains on Friday as oil prices jumped nearly 3 percent after a major pipeline supplying Canadian oil to the United States was shutdown.

Light, sweet crude for October delivery rallied 2.2 dollars to settle at 76.45 dollars a barrel on the New York Mercantile Exchange.

Brent crude for October delivery rose 69 cents to settle at 78. 16 dollars a barrel on the International Futures Exchange in London.

Source: Xinhua


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