Stocks on Wall Street started the month with a bang on the back of encouraging manufacturing and construction-spending data and better-than-expected European bank earnings.The Dow Jones Industrial Average jumped 208.44 points, or 2.0%, to 10,674.38. This
Stocks on Wall Street started the month with a bang on the back of encouraging manufacturing and construction-spending data and better-than-expected European bank earnings.
The Dow Jones Industrial Average jumped 208.44 points, or 2.0%, to 10,674.38. This adds to a July gain that saw the Dow put on 7.1%, its biggest monthly climb since July 2009.
Stocks were helped by a better-than-expected July reading of the Institute for Supply Management's manufacturing index and an unexpected climb in June construction spending.
Earlier, stronger-than-expected quarterly reports from European banks fuelled a global rally.
The Nasdaq Composite advanced 1.8% to 2295.36 while the S&P 500 index surged 2.2% to 1125.86.
Companies with significant global exposure led the Dow's climb as confidence mounted in the overseas economic recovery. Alcoa jumped 3.3%, while DuPont gained 2.2%.
Technology components climbed. Hewlett-Packard gained 3%, Cisco Systems rose 2.6% and Intel climbed 2.5%. Financials also strengthened, boosted by upbeat earnings from HSBC and BNP Paribas. Bank of America advanced 2.7% and JP Morgan Chase rose 2.6%.
Other markets: Europe, Asia up
European stock markets ended sharply higher on upbeat economic data, solid earnings from the banking sector and a jump in commodity prices.
HSBC, Europe's largest bank by market capitalization, reported a doubling of first half profit compared with the year-ago period. Impairment charges fell sharply and the bank booked a gain on the value of its own debt.
France's BNP Paribas also reported better-than-expected second-quarter net profit, as robust retail operations and lower bad-loan provisions more than offset a slide in investment banking business.
The Stoxx Europe 600 banks index gained 3.9% to 230.81.
The Stoxx Europe 600 index rose 2.6% to 262.09, breaking a three-session losing streak. The UK's FTSE 100 added 2.7% to 5397.11, Germany's DAX gained 2.3% to 6292.13 and France's CAC-40 finished 3.0% higher at 3752.03.
Asian stocks rallied as signs of weakness in Chinese manufacturing activity added to hopes Beijing would move away from efforts to stem economic growth, while Japanese shares climbed in response to strong earnings reports.
The Shanghai Composite rose 1.3% to 2672.52 for its ninth advance in 11 sessions and in Hong Kong, the Hang Seng index climbed 1.8% to 21412.79.
In Tokyo, the Nikkei Stock Average rose 0.4% to 9570.31 as worry over the yen's strength offset strong earnings reports from blue-chip companies such as Honda Motor.
Commodities: Oil, gold up
Crude futures topped $US80 a barrel for the first time in nearly three months as investors with an optimistic economic outlook took control of a quiet market.
Light, sweet crude for August delivery traded $US1.95, or 2.5%, higher at $US80.90 a barrel in New York. Brent crude on the ICE futures exchange traded $US2.03, or 2.6%, higher at $US80.21 a barrel.
Gold futures eked out gains, supported by rallies across many commodities and a weaker dollar.
The most actively traded contract, for December delivery, rose $US1.50, or 0.2%, to $US1185.40 an ounce in New York. Gold for August delivery gained $US1.70, or 0.14%, to $US1183.40.
Currencies: Euro, pound up
The euro advanced to a three-month high against the dollar while the UK pound hit its strongest point in six months after better-than-expected global manufacturing data spurred increasing confidence in the global recovery.
The euro was at $US1.3170 from $US1.3033 late on Friday, after hitting $US1.3195 intraday.
The dollar was at ¥86.51 from ¥86.40. The euro was at ¥113.93 from ¥112.61. The UK pound was at $US1.5888 from $US1.5690, after hitting $US1.5908.
