Investing.com - U.S. stocks close higher Wednesday as stronger-than-expected U.S. housing data combined with positive Spanish speculation to ignite the risk on trade.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.04%, the S&P 500 index climbed 0.41%, while the Nasdaq Composite index pushed ahead by 0.10%.
Sparking the rally, government data indicated that the number of housing starts in the U.S. rose to the highest level in four years in September, while building permits issued surged to the highest level since July 2008.
The U.S. Census Bureau said that housing starts rose by 15% in September to a seasonally adjusted 0.872 million, blowing past expectations for a 2.7% increase to 0.770 million.
The report also showed that the number of building permits issued in September rose 11.6% to a seasonally adjusted 0.894 million, compared to expectations for a 1.1% gain to 0.810 million.
Sentiment was boosted earlier, after Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
In the tech sector, Intel saw shares plummet 3.33% and IBM dove 4.58% on signs the global economic slowdown is prompting companies to curtail technology spending and pushing consumers to favor mobile devices like Apple's iPhone over personal computers.
On Tuesday, Intel forecast fourth-quarter gross margins that missed analysts' estimates, while IBM reported third-quarter revenue that fell short of projections.
On the upside, financial stocks were mostly higher, as shares in JP Morgan added 0.33% and Goldman Sachs climbed 0.66%, while Citigroup jumped 1.40%.
Bank of America underperformed on the other hand, sliding 0.63% after the U.S. lender reported a breakeven quarter, exceeding expectations for a loss, while revenue was lighter than expected.
Elsewhere, PepsiCo advanced 0.84% after posting higher-than-expected earnings, although revenue fell slightly short due to the stronger U.S. dollar.
Other stocks in focus included American Express and Ebay, scheduled to post earnings after the closing bell.
At the close of European trade, the EURO STOXX 50 rose 0.86%, France’s CAC 40 added 0.76%, while Germany’s DAX 30 edged up 0.25%.
Traders are awaiting U.S. initial jobless claims and Great Britain’s retail sales on Thursday.
At the close of U.S. trade, the Dow Jones Industrial Average gained 0.04%, the S&P 500 index climbed 0.41%, while the Nasdaq Composite index pushed ahead by 0.10%.
Sparking the rally, government data indicated that the number of housing starts in the U.S. rose to the highest level in four years in September, while building permits issued surged to the highest level since July 2008.
The U.S. Census Bureau said that housing starts rose by 15% in September to a seasonally adjusted 0.872 million, blowing past expectations for a 2.7% increase to 0.770 million.
The report also showed that the number of building permits issued in September rose 11.6% to a seasonally adjusted 0.894 million, compared to expectations for a 1.1% gain to 0.810 million.
Sentiment was boosted earlier, after Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
In the tech sector, Intel saw shares plummet 3.33% and IBM dove 4.58% on signs the global economic slowdown is prompting companies to curtail technology spending and pushing consumers to favor mobile devices like Apple's iPhone over personal computers.
On Tuesday, Intel forecast fourth-quarter gross margins that missed analysts' estimates, while IBM reported third-quarter revenue that fell short of projections.
On the upside, financial stocks were mostly higher, as shares in JP Morgan added 0.33% and Goldman Sachs climbed 0.66%, while Citigroup jumped 1.40%.
Bank of America underperformed on the other hand, sliding 0.63% after the U.S. lender reported a breakeven quarter, exceeding expectations for a loss, while revenue was lighter than expected.
Elsewhere, PepsiCo advanced 0.84% after posting higher-than-expected earnings, although revenue fell slightly short due to the stronger U.S. dollar.
Other stocks in focus included American Express and Ebay, scheduled to post earnings after the closing bell.
At the close of European trade, the EURO STOXX 50 rose 0.86%, France’s CAC 40 added 0.76%, while Germany’s DAX 30 edged up 0.25%.
Traders are awaiting U.S. initial jobless claims and Great Britain’s retail sales on Thursday.