Stocks rally again thanks to Syria and China

Stocks rally again thanks to Syria and China
Tuesday, September 10, 2013 - 9:27am

Investors had a lot to be optimistic about Tuesday: Upbeat data from China, easing Syria concerns and a much-anticipated Apple event later in the day.

The Dow Jones industrial average jumped more than 100 points, while the S&P 500 and Nasdaq also rose, extending Monday's 1% gains.

Shares of Apple were slightly lower as investors await the company's release of the next generation of iPhones, rumored to be colorful and cheaper to produce. The event is being held at 1 p.m. ET. But the stock has run up sharply since Apple's last earnings report.

Nike, Goldman Sachs and Visa were also in focus, as the three will be the newest members of the Dow, replacing Alcoa, Hewlett-Packard and Bank of America. Shares of Goldman, Nike and Visa all rose on the news. Alcoa and HP fell while BofA was flat.

Meanwhile, shares of Urban Outfitters tumbled after it warned that its third-quarter same-store sales, a key measure for retailers, would only grow at a mid-single digit pace, below analysts forecasts.

The broader market was likely moving higher again as concerns about a U.S.-led military strike on Syria have been pushed to the back burner. A military strike had seemed imminent last month and caused some extreme market volatility recently.

But politicians in Washington continue to debate the pros and cons of a strike. In addition, Secretary of State John Kerry raised the possibility Monday of avoiding an attack if Syria were to give up its chemical weapons.

Investors were also encouraged by more evidence that the Chinese economy has stabilized. Industrial output rose a robust 10.4% in August, the strongest in over a year. Retail sales and fixed asset investments last month also rose more than expected.

The healthy data sparked gains in Asian markets. European markets were charging higher in afternoon trading, inspired by bullishness in Asia and North America.

Comments News Comments

Post new Comment