Wall Street ends 6-day losing streak

09:51, June 10, 2011      

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The Wall Street rallied on Thursday,snapping a six-day losing streak, as market sentiment was boosted by an upbeat trade report and higher oil prices.

Thursday's increase came after a week-long sell-off, which made many investors think the market has been technically pretty much over-sold.

Traders were encouraged after the Commerce Department said the U.S. trade deficit unexpectedly narrowed in April due to record- high exports.

Data showed U.S. companies sold more computers, heavy machinery and telecommunications equipment overseas while imports declined, largely because purchases of goods from Japan dropped significantly in the aftermath of the earthquake and tsunami. "We are all very excited to hear the trade data and it's definitely help lifting up the market confidence,"Ben P. Willis, director of Floor Operations of Sunrise Securities told Xinhua after the closing bell on Thursday.

Meanwhile, according to the Labor Department, the number of people applying for unemployment benefits rose 1,000 to 426,000 in the week ending June 4, while analysts were expecting a slight drop. After a six-day consecutive losing sessions, some analysts still have positive view about future trend.

"To us, the market charts point to a correction or worse, but an overly pessimistic investment outlook is tempered by our still- positive economic growth forecast, which does not include a double- dip recession, combined with still-increasing EPS estimates,"Sam Stovall, chief investment strategist of Standard & Poor's Equity Research told Xinhua.

However, investors worried about inflation risk in euro zone. The European Central Bank on Thursday left its key interest rate unchanged at 1.25 percent. Jean-Claude Trichet, the president of the central bank, said "strong vigilance" is needed over inflation, signaling a widely-expected interest rate hike in July.

As for shares, basic materials and energy shares were among the leaders in the market as crude oil jumped to nearly 102 dollars a barrel in New York, buoying related stocks.

The Dow Jones industrial average rallied 75.42 points, or 0.63 percent, to 12,124.36. The Standard & Poor's 500 gained 9.44 points, or 0.74 percent, to 1,289.00. The Nasdaq Composite Index rose 9.49 points, or 0.35 percent, to 2,684.87.

Source: Xinhua
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