This from the Globe:
Bullish investors were hoping that a day like today would roll around soon - a day in which economic data not only exceed expectations, but crush them.
After a disappointing start on Tuesday following the release of the S&P/Case-Shiller home price index, the Conference Board released its consumer confidence index for May. Economists had expected a small step in the right direction, but what they got was a great leap: The index rose to 54.9 from 39.2.
With glimpses of a robust consumer in their minds, investors jumped at stocks minutes after the index reading was released. The Dow Jones industrial average closed at 8473.49, up 196.17 points or 2.4 per cent. The broader S&P 500 closed at 910.33, up 23.33 points or 2.6 per cent.
It was the first gain for U.S. stock market indexes in five trading days and the second biggest upward move since major indexes stalled after hitting a rebound-high on May 8. However, the S&P 500 remains 2 per cent below its May 8 high.
Of course, improving consumer confidence might translate into more consumer spending, so it should come as no surprise to hear that stocks directly tied to discretionary spending enjoyed some of the biggest gains. American Express Co. rose 5 per cent, Home Depot Inc. rose 4.1 per cent and Walt Disney Co. rose 3.5 per cent.
Meanwhile, who needs steady performers like Coca-Cola Co.? The defensive stock was one of two stocks in the 30-member Dow to end the day lower, falling 0.2 per cent. (Bank of America Corp. was the other, falling 0.8 per cent, even as JPMorgan Chase & Co. rose 6.2 per cent.)
In Canada, the S&P/TSX composite index closed at 10,285.90, up 216.4 points or 2.2 per cent.
Financials were the biggest movers, after Bank of Montreal reported second quarter results that topped analysts' expectations after certain one-time items were excluded. BMO rose 5.2 per cent, Toronto-Dominion Bank rose 6 per cent and Bank of Nova Scotia rose 5.5 per cent.
Research In Motion Ltd. was also a big mover, rising 5 per cent.
Commodity producers were mixed. Suncor Energy Inc. rose 2.7 per cent and EnCana Corp. rose 1.5 per cent, but Canadian Oil Sands Trust fell 1.3 per cent after the price of crude oil rose to $62.45 (U.S.) a barrel, up 78 cents. As well, Barrick Gold Corp. fell 3.7 per cent after the price of gold fell to $953.30 an ounce, down $5.60.
Copyright 2001 The Globe and Mail
After a disappointing start on Tuesday following the release of the S&P/Case-Shiller home price index, the Conference Board released its consumer confidence index for May. Economists had expected a small step in the right direction, but what they got was a great leap: The index rose to 54.9 from 39.2.
With glimpses of a robust consumer in their minds, investors jumped at stocks minutes after the index reading was released. The Dow Jones industrial average closed at 8473.49, up 196.17 points or 2.4 per cent. The broader S&P 500 closed at 910.33, up 23.33 points or 2.6 per cent.
It was the first gain for U.S. stock market indexes in five trading days and the second biggest upward move since major indexes stalled after hitting a rebound-high on May 8. However, the S&P 500 remains 2 per cent below its May 8 high.
Of course, improving consumer confidence might translate into more consumer spending, so it should come as no surprise to hear that stocks directly tied to discretionary spending enjoyed some of the biggest gains. American Express Co. rose 5 per cent, Home Depot Inc. rose 4.1 per cent and Walt Disney Co. rose 3.5 per cent.
Meanwhile, who needs steady performers like Coca-Cola Co.? The defensive stock was one of two stocks in the 30-member Dow to end the day lower, falling 0.2 per cent. (Bank of America Corp. was the other, falling 0.8 per cent, even as JPMorgan Chase & Co. rose 6.2 per cent.)
In Canada, the S&P/TSX composite index closed at 10,285.90, up 216.4 points or 2.2 per cent.
Financials were the biggest movers, after Bank of Montreal reported second quarter results that topped analysts' expectations after certain one-time items were excluded. BMO rose 5.2 per cent, Toronto-Dominion Bank rose 6 per cent and Bank of Nova Scotia rose 5.5 per cent.
Research In Motion Ltd. was also a big mover, rising 5 per cent.
Commodity producers were mixed. Suncor Energy Inc. rose 2.7 per cent and EnCana Corp. rose 1.5 per cent, but Canadian Oil Sands Trust fell 1.3 per cent after the price of crude oil rose to $62.45 (U.S.) a barrel, up 78 cents. As well, Barrick Gold Corp. fell 3.7 per cent after the price of gold fell to $953.30 an ounce, down $5.60.
Copyright 2001 The Globe and Mail
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