Stocks Rise Sharply; Dow Up 51.22
NEW YORK (AP) _ Stocks rose sharply this morning, fueled by an overseas rally and encouraging signs on inflation from the first major reading on November’s economic activity.
At 10 a.m. on Wall Street, the Dow Jones industrial average was up 51.22 at 7,874.35. About 15 minutes later, after the release of a report on last month’s manufacturing activity, the Dow was up nearly 100 points.
Most broad-market indicators also opened with sizable gains as the Tokyo Stock Exchange rose for the fourth straight session, energizing markets throughout Asia and Europe.
Wall Street quickly extended its early advance as a national association of factory executives reported that manufacturing sector slowed its rate of growth during November, bolstering arguments that the economy isn’t expanding at an inflationary pace.
Advancing issues outnumbered decliners by a 2-to-1 margin on the New York Stock Exchange, where volume came to 61.88 million shares, up sharply from Friday’s sluggish pace.
The Standard & Poor’s 500 list was up 5.71 at 961.11, and the NYSE composite index was up 2.84 at 501.94.
The Nasdaq composite index was up 9.66 at 1,610.21, but the American Stock Exchange composite index was down 0.34 at 661.77.
Tokyo shares rallied as Prime Minister Ryutaro Hashimoto told legislators that the government will consider using public funds to protect investors and depositors to protect the nation’s beleaguered financial system.
Tokyo’s Nikkei stock average rose 2.2 percent. In afternoon trading, Frankfurt’s DAX index was up 3.0 percent and London’s FT-SE 100 was up 1.1 percent.