U.S. shares book fourth straight gain on confidence; Dow up 0.18%
Published Feb 28, 2012 04:24PM ET
At the close of U.S. trade, the Dow climbed 0.18%, the S&P 500 advanced 0.34% and the Nasdaq Composite added 0.69%.
The rally was spurred as the Conference Board’s index climbed more than expected in February to 70.8.
The stock rally was not limited to the United States with markets climbing all around the globe.
Sparking the worldwide rally, German Chancellor, Angela Merkel won a parliamentary vote to provide Greek aid after the close of trading Monday.
Merkel warned policy makers that pushing Greece out of the euro zone risked “incalculable” damage.
However, Greece’s credit rating was slashed to selective default by Standard & Poors after the island nation negotiated the biggest national debt restructuring in history.
The European Central Bank will allocate cash from its long term refinancing fund tomorrow. It is expected to provide EUR470 billion of three year cash to help stabilize the euro zone.
Consumer sentiment is on the upswing in the euro zone region. An index of executive and consumer sentiment in the 17 nation group climbed for a second month in February to 94.4, beating analysts’ expectations of a gain to 94.
German consumer confidence is expected to increase to a 12 month high in March due to declining unemployment, according to GfK SE.
Meanwhile, in the U.S., durable goods orders plummeted 4%, whereas economists were expecting a 1% decline, casting a bearish aura on the otherwise bullish session.
Apple added 1.7%, hitting an all time record high price, on anticipation of the release of iPad 3 on March 7.
Priceline led the S&P 500 higher adding 7.2% after penetrating into over 160 countries.
Office Depot soared 16% after beating analysts’ earnings per share estimates.
In bearish news, Apollo Group, the for profit education provider gave back 15% after slashing its operating profit forecast for 2012 to USD735 million.
At the close of European trade, the EURO STOXX 50 advanced 0.28%, France's CAC 40 gained 0.44%, while Germany’s DAX added 0.57%. Meanwhile, in the U.K. the FTSE 100 eased higher by 0.18%.
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Written By: Investing.com
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