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Posted on Thu, Nov. 05, 2009 11:51 PM
Dow again eclipses 10,000
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A bright forecast from Cisco Systems and upbeat economic news sent stocks soaring Thursday and propelled the Dow Jones industrials back above 10,000.
The rally, coming before this morning’s October employment report, showed that investors are regaining their optimism about a recovery.
This latest surge was powered not by a single event, but by a wave of good news:
•Cisco Systems Inc. boosted hopes for the technology industry after the largest maker of computer networking gear forecast revenue growth for the first time in a year. The forecasts of CEO John Chambers carry big weight on Wall Street, and his announcement that the company will begin hiring workers injected a jittery market with confidence.
•The government said the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week, the lowest level since January and a lower number than economists had forecast. Initial claims are considered a gauge of the pace of layoffs.
•Worker productivity jumped by the most in six years, rising 9.5 percent in the July-September quarter. The government figures drove hopes that lower costs will boost corporate profits. But the report also illustrated that many employers remain reluctant to hire.
•Retailers had higher sales for the second straight month in October after more than a year of sliding. The retail industry posted a 2.1 percent sales gain for October, according to an International Council of Shopping Centers-Goldman Sachs tally. Investors are looking for any sign that consumers are willing to spend more as the holiday shopping season approaches.
Regional stocks also advanced, led by Layne Christensen, Cerner, Garmin and Kansas City Southern.
Kansas City Southern shares have gained 15.6 percent this week following Berkshire Hathaway’s $34 billion bid for rival Burlington Northern Santa Fe Corp. Shares in Kansas City Southern closed Thursday at $27.83, up $1.37.
The Dow rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct. 22 and 86 points below its high of the year
The broader Standard & Poor’s 500 index rose 20.13, or 1.9 percent, to 1,066.63, its fourth straight gain.
The Nasdaq rose 49.80, or 2.4 percent, to 2,105.32, its biggest gain since a 2.5 percent spike on July 23.
Posted on Thu, Nov. 05, 2009 11:51 PM
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