Stocks on Wall Street veered from heavy losses to solid gains as a positive spin was put on US Federal Reserve chairman Ben Bernanke's congressional testimony tomorrow.Traders said the market's change of sentiment was spurred by speculation over further m
Stocks on Wall Street veered from heavy losses to solid gains as a positive spin was put on US Federal Reserve chairman Ben Bernanke's congressional testimony tomorrow.
Traders said the market's change of sentiment was spurred by speculation over further measures the central bank might take to stimulate the economy. Expectations of strong earnings from Apple, which reported after the close, also buoyed investor sentiment.
The Dow Jones Industrial Average closed 75.61 points, or 0.7%, higher at 10,230.04 after erasing its earlier triple-digit loss.
The technology-heavy Nasdaq Composite Index gained 0.9% to 2222.49 as Apple gained 2.2%. The S&P 500 index was up 1.1% to 1083.47 with materials stocks leading the rises.
Earlier, technology stocks had lagged, weighed by disappointing second-quarter revenue reports from IBM, off 3.3% and Texas Instruments, down 3.2%. Healthcare stocks were also weak, weighed by a 1.9% drop in Johnson & Johnson after it cut its 2010 earnings forecast.
Other markets: Europe down, Asia up
European stocks ended lower, but off their lows, as a late-session rally in the basic-resources sector.
Earlier, weakness in the telecoms sector and poor demand at a Hungarian Treasury bill auction kept stocks in the red.
Telecoms were hit after Cable & Wireless Worldwide said UK government spending cuts would slow earning growth this year. C&W shares fell 17%.
Rising metal prices pushed ArcelorMittal up 2.1% and Rio Tinto up 4.1%.
The pan-European Stoxx 600 index closed up 0.1% at 246.35. The UK's FTSE 100 index fell 0.2% to 5139.46, France's CAC-40 index ended down 0.5% at 3468.02 and Germany's DAX fell 0.7% to 5967.49.
Asian markets ended mostly higher as Chinese stocks marched ahead on continued expectations Beijing will avoid further tightening measures as economic growth moderates.
Japan's Nikkei Stock Average fell 1.2% to 9300.46 as investors returned from a long weekend and reacted to the region's losses on Monday and Friday's sharp drop on Wall Street.
Australia's S&P/ASX 200 rose 1% to 4403.60, China's Shanghai Composite advanced 2.2% to 2528.73, Korea’s Kospi rose 0.3% to 1736.77 and Taiwan’s Taiex rose 0.8% to 7712.03.
On the downside, India’s Sensex closed 0.3% down at 17,878.14.
Commodities: Oil up, gold steady
Crude futures settled at a three-week high, as expectations for tightening US oil supplies were bolstered by a strengthening storm system in the Caribbean.
Light, sweet crude for August delivery settled 90USc, or 1.2%, higher, at $US77.44 a barrel in New York. The contract expired at settlement and saw extremely light trading; the most-active September contract settled 68USc, or 0.9%, higher at $US77.58 a barrel.
Brent crude on the ICE futures exchange was up 52USc, or 0.7%, at $US76.14 a barrel.
Gold futures rose slightly as buyers took the opportunity to invest at a discount from recent highs. The most actively traded contract for August delivery was up $US1.40 to $US1183.30 in New York.
Gold is trading at the low end of its recent range and the most-active contract is down more than 5% from record highs set in June.
Currencies: Euro down, dollar up
The euro retreated from a 10-week high against the dollar as investors worried about the outcome of the European bank stress tests. The euro had ticked as high as $US1.3029 in overnight trading after a steep rally from $US1.1876, the more-than four-year low it hit in early June.
The Canadian dollar advanced against the greenback after the Bank of Canada increased its target interest rates. The loonie’s gains lagged behind its other dollar peers, Australia and New Zealand, because the rate increase was expected. The Canadian central bank also issued a gloomier outlook on the economy.
The euro was at $US1.2900, compared with $US1.2942 late on Monday. The dollar strengthened to ¥87.23 from ¥86.86. The euro moved to ¥112.53 from ¥112.41. The UK pound strengthened to $¨ß1.5293 from $US1.5235.
