Roundup: U.S. stocks close at four-month high amid euro hopes, Cisco earnings
- YuJing
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E-mail Xinhua, August 17, 2012
Roundup: U.S. stocks close at four-month high amid euro hopes, Cisco earnings
NEW YORK, Aug. 16 (Xinhua) -- U.S. stocks closed higher on Thursday amid euro zone hopes and Cisco positive earnings report.
German Chancellor Angela Merkel on Thursday reiterated her support for the European Central Bank's plans to fight for the euro zone crisis. The news lifted up the equity market.
Meanwhile, Cisco Systems, a technology giant, posted its earning report on Thursday, saying that it hiked its dividend to 75 percent. Its stock rose nearly 10 percent on Thursday and led to a rally in technology shares on the same day.
The Standard & Poor's 500 Index closed at its highest in more than four months on Thursday and the Nasdaq Composite Index rose over 1 percent.
The Dow Jones industrial average added 85.33 points, or 0.65 percent, at 13,250.11. The Standard & Poor's 500 was up 9.98 points, or 0.71 percent, to 1,415.51. The Nasdaq Composite Index rose 31.46 points, or 1.04 percent, to 3,062.39.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, slipped to just above 14, a five-year low.
On economic front, jobless claims climbed by 2,000 to 366,000 last week. The four-week moving average, a less volatile measure, however, dropped to 363,750, the fewest since the week ended March 31, according to the U.S. Labor Department.
The slightly decreasing jobless claims also helped lift market sentiment despite another report showing the housing market was still weak.
The U.S. Commerce Department said Thursday housing starts dropped 1.1 percent last month to a seasonally adjusted annual rate of 746,000 units.
Another report showed that the Philadelphia Federal Reserve Bank's business activity index for August was still in its negative territory for the fourth straight month. Investors were now concerned about the manufacturing contraction in the mid- Atlantic area.
As for shares, Facebook slumped to new all-time lows after the company's first lockup period came to an end.
As for other markets, the U.S. dollar fell against major currencies in late New York trading on Thursday as weak U.S. economic data raised expectations for further monetary easing stimulus by the U.S. Federal Reserve. The dollar index lost 0.294 to 82.417.
Crude prices on Thursday rose for the third straight day as supply worries lingered and a string of U.S. weak data fueled stimulus hopes. Light, sweet crude for September delivery added 1.27 dollars, or 1.35 percent, to settle 95.60 dollars a barrel on the New York Mercantile Exchange, the first settlement over 95 dollars since Mid-May. Enditem
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