U.S. stocks rallied, sending the Standard & Poor’s 500 Index higher for a fourth straight day, as a package of dollar loans for European banks assuaged concern spurred by signs unemployment is worsening.
All 10 main industries in the S&P 500 advanced as the European Central Bank said it will lend dollars to euro-area banks in a series of three-month loans to ensure they have enough of the U.S. currency through the end of the year. General Electric Co. (GE), Bank of America Corp. (BAC) and Chevron Corp. (CVX) added at least 1.8 percent, pacing gains in companies most-tied to economic growth. Netflix Inc. (NFLX) tumbled 12 percent as the online film-rental service cut its forecast for domestic subscribers.
The S&P 500 advanced 0.9 percent to 1,199.87 at 10:13 a.m. New York time. The benchmark gauge for American equities rallied 4 percent in four days. The Dow Jones Industrial Average added 125.22 points, or 1.1 percent, to 11,371.95 today.
“The central bank coordinated action is rather significant,” Brian Jacobsen, chief portfolio strategist at San Francisco-based Wells Fargo Funds Management, which oversees more than $400 billion. “We can take a little confidence in knowing that when money market funds or banks are unwilling to expand liquidity to each other, that central bankers are willing to step in and fill that void.”
Stocks rallied as the Frankfurt-based ECB said it will coordinate with the Federal Reserve and other central banks to conduct three dollar liquidity-providing operations with a maturity of approximately three months. The loans are in addition to the bank’s regular seven-day dollar offerings and will be conducted as fixed-rate tenders with full allotment.
“It’s nice to see that the risk factors coming out of Europe are abating somewhat,” Michael Mullaney, who helps manage $9.5 billion at Fiduciary Trust in Boston, said in a telephone interview. “The U.S. doesn’t have a liquidity problem, it has a demand problem. While Europe has a demand problem too, it has a pressing liquidity problem. That addresses the liquidity issue that would be threatening the European banking system.”
In the U.S., a report showed industrial production in the U.S. unexpectedly rose in August. Earlier today, stock futures trimmed gains as data showed applications for U.S. unemployment benefits unexpectedly rose last week to the highest level since the end of June. A separate report showed that manufacturing in the New York region unexpectedly contracted in September at a faster pace.
壞的一面看，是治標不治本。好的一面看，市場最擔心的情況 - 銀行，尤其是持重歐豬債的歐洲銀行會出現困難的可能性，暫時得到舒緩，至少到年底都未會有大件事先。這消息甚至蓋過瑞銀交易員輸大錢和新申領失業救濟人數略高預期的壞消息。
All 10 main industries in the S&P 500 advanced as the European Central Bank said it will lend dollars to euro-area banks in a series of three-month loans to ensure they have enough of the U.S. currency through the end of the year. General Electric Co. (GE), Bank of America Corp. (BAC) and Chevron Corp. (CVX) added at least 1.8 percent, pacing gains in companies most-tied to economic growth. Netflix Inc. (NFLX) tumbled 12 percent as the online film-rental service cut its forecast for domestic subscribers.
The S&P 500 advanced 0.9 percent to 1,199.87 at 10:13 a.m. New York time. The benchmark gauge for American equities rallied 4 percent in four days. The Dow Jones Industrial Average added 125.22 points, or 1.1 percent, to 11,371.95 today.
“The central bank coordinated action is rather significant,” Brian Jacobsen, chief portfolio strategist at San Francisco-based Wells Fargo Funds Management, which oversees more than $400 billion. “We can take a little confidence in knowing that when money market funds or banks are unwilling to expand liquidity to each other, that central bankers are willing to step in and fill that void.”
Stocks rallied as the Frankfurt-based ECB said it will coordinate with the Federal Reserve and other central banks to conduct three dollar liquidity-providing operations with a maturity of approximately three months. The loans are in addition to the bank’s regular seven-day dollar offerings and will be conducted as fixed-rate tenders with full allotment.
Slipping Back
Concern the global economy was slipping back into a recession amid a worsening European-debt crisis triggered an 18 percent plunge in the S&P 500 between the end of April and Aug. 8. Since then, it has rebounded 6.2 percent through yesterday.“It’s nice to see that the risk factors coming out of Europe are abating somewhat,” Michael Mullaney, who helps manage $9.5 billion at Fiduciary Trust in Boston, said in a telephone interview. “The U.S. doesn’t have a liquidity problem, it has a demand problem. While Europe has a demand problem too, it has a pressing liquidity problem. That addresses the liquidity issue that would be threatening the European banking system.”
In the U.S., a report showed industrial production in the U.S. unexpectedly rose in August. Earlier today, stock futures trimmed gains as data showed applications for U.S. unemployment benefits unexpectedly rose last week to the highest level since the end of June. A separate report showed that manufacturing in the New York region unexpectedly contracted in September at a faster pace.
壞的一面看，是治標不治本。好的一面看，市場最擔心的情況 - 銀行，尤其是持重歐豬債的歐洲銀行會出現困難的可能性，暫時得到舒緩，至少到年底都未會有大件事先。這消息甚至蓋過瑞銀交易員輸大錢和新申領失業救濟人數略高預期的壞消息。
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