S&P 500 Ends At 5-Year High After China Data
  • 11 years ago
U.S. stocks rose on Thursday (January 10) and the S&P 500 ended at a fresh five-year high as stronger-than-expected exports from China spurred optimism about global growth prospects.
Buying accelerated late in the day after the S&P 500 broke through technical resistance at 1,466.47, which was the market's closing level last Friday and the highest level since December 2007.
Financial and energy stocks were the day's top gainers. The financial sector index rose 1.4 percent and the energy sector was up 1 percent.
Analysts cited economic data out of China as the day's catalyst, which showed the country's export growth rebounded sharply to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown.
Wall Street's fear gauge, the CBOE Volatility Index suggested markets were relatively calm. The VIX was down 2.3 percent at 13.49.
At Thursday's close, the S&P sits about 6 percent below its all-time closing high of 1,565.15 hit in October 2007.
The Dow Jones industrial average gained 80.71 points, or 0.60 percent, to 13,471.22. The Standard & Poor's 500 Index rose 11.10 points, or 0.76 percent, to 1,472.12. The Nasdaq Composite Index added 15.95 points, or 0.51 percent, to 3,121.76.
Thursday's session had earlier included a dip that traders said was triggered by a trade in the options market that prompted a large amount of S&P futures to hit the market at the same time. That sent the S&P 500 index down rapidly but those losses were reversed through the afternoon.
Financials benefited from events this week that added clarity to mortgage rules and banks' potential exposure to the housing market.
The government's consumer finance watchdog announced mortgage rules on Thursday that will force banks to use new criteria to determine whether a borrower can repay a home loan.
Earlier this week, several big mortgage lenders reached a deal with regulators to end a review of foreclosures mandated by the government.
Bank of America gained 3.1 percent to $11.78 (USD), while Morgan Stanley was up 3.7 percent at $20.34, one day after sources said the bank plans to cut jobs.
Shares of upscale jeweler Tiffany dropped 4.5 percent to $60.40 after it said sales were flat during the holidays.
Herbalife Ltd stepped up its defense against activist investor Bill Ackman, stressing it was a legitimate company with a mission to improve nutrition and help public health. The stock ended down 1.8 percent at $39.24 after a volatile day.