Stock rally uninfluenced by the discouraging economic news
2008-02-27 15:16:51 (GMT) (Caymanmama.com - Business News)NEW YORK — Stocks closed higher on Tuesday, for third session consecutively, as the positive news from the IBM and MBIA, bond insurer nullified many disappointing economic reports that were released earlier this session.
The industrial average of Dow Jones (INDU) rose by around 0.9%, 0.7% was added to the broader Standard & Poor’s 500 (SPX). 0.75% was also gained by the tech laden Nasdaq composite (COMP), reported CNN.
A rise in the bond prices was noticed. $1.65 for every barrel has also been increased in the crude prices, which is record high. The USD dropped to its record low as opposed to the euro.
Following the reports that presented a spiking wholesale inflation, even shares slipped that weakened the confidence of consumers and created problems for housing market.
After the announcement of blue chip IBM to buy back shares of $15 billion, investors seemed to accept the downbeat economic data. In the later session, the stocks kept on increasing when the investor service of Moody said that it will continue to maintain a credit rating of bond insurer MBIA. At the time of close, stocks were finally at gain.
Investors will surely pay attention when Federal Reserve Chairman Ben Bernanke appear before Senate Bank committees and the House Financial Services on Wednesday so as to discuss about the present situation of economy and the monetary policy.
“The gyrations seem to have narrowed somewhat and the market seems to be looking forward,” said Peter Cardillo, chief market economist at the Avalon Partners.
CaymanMama.com - Press Release Distribution Service
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