Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

U.S. stocks rise on upbeat jobless data; Dow Jones up 0.30%

Published 10/11/2012, 09:44 AM
Updated 10/11/2012, 09:45 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
JP225
-
HK50
-
C
-
BAC
-
TAHS
-
IXIC
-
Investing.com - U.S. stocks opened higher on Thursday, boosted by data showing that U.S. initial jobless claims fell to their lowest level since February 2008 last week, amid fresh hopes that Spain will soon request a sovereign bailout.

During early U.S. trade, the Dow Jones Industrial Average rose 0.30%, the S&P 500 index climbed 0.59%, while the Nasdaq Composite index advanced 0.65%.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

Sentiment was also boosted by optimism that a downgrade on Spain by ratings agency Standard & Poor’s would force the country into requesting a formal bailout.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

Sprint was one of the session's top gainers, as shares soared 15.67% after the Wall Street Journal reported that Japan's Softbank is in "advanced" talks to buy a USD12.8 billion stake in the wireless communications company.

Financial stocks also posted sharp gains, as U.S. lenders tracked their European counterparts' performances. Shares in Goldman Sachs climbed 0.92% and JP Morgan rallied 1.44%, while Bank of America and Citigroup surged 1.63% and 2.28% respectively.

Separately, Federal authorities are now reportedly using taped phone conversations to build criminal cases related to the multibillion-dollar trading loss at JP Morgan, focusing on calls in which employees openly discussed how to value the troubled bets in a favorable way.

Elsewhere, the world’s largest soft-drinks maker, Coca-Cola added 0.13% amid reports it is currently in discussions to invest about USD10 million in Spotify Ltd., the subscription music-streaming service.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.14%, France’s CAC 40 rallied 1.25%, Germany's DAX advanced 1.17%, while Britain's FTSE 100 surged 1.23%.

During the Asian trading session, Hong Kong's Hang Seng Index rose 0.38%, while Japan’s Nikkei 225 Index lost 0.58%.

Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.