After Obama's calming remarks, Dow marks 4th straight advance
NEW YORK - Wall Street accomplished yesterday a feat that had seemed impossible just a week ago, rallying and propelling the Dow Jones industrial average and Standard & Poor's 500 index to their fourth straight winning sessions.
NEW YORK - Wall Street accomplished yesterday a feat that had seemed impossible just a week ago, rallying and propelling the Dow Jones industrial average and Standard & Poor's 500 index to their fourth straight winning sessions.
Investors' growing confidence in the nation's financial system fed the latest advance.
The market reversed losses from earlier in the session after President-elect Barack Obama pledged he would have a plan to deal with the nation's economic crisis on his first day in office. After filling more spots on his economic team, Obama said, "Help is on the way."
His remarks were calming after the day's economic reports, which pointed to more weakness. The government reported that unemployment was at recessionary levels, new-home sales were at their lowest level in nearly 18 years, consumer spending took another plunge, and factory orders for big-ticket items were down by the largest amount in two years.
The Dow finished up 2,471.14, or 2.91 percent, at 8,726.61.
Broader market indexes rose even more. The Standard & Poor's 500 gained 30.29, or 3.53 percent, to end at 887.68, and the Nasdaq composite index was up 67.37, or 4.60 percent, to close at 1,532.10.
It was the S&P's steepest four-day rally since 1933. The index is up 18 percent since dropping to an 11-year low last Thursday.
Even so, the index is down 43 percent from its October 2007 record as credit-related losses and writedowns at global financial companies approached $1 trillion, threatening global economic growth.
Exxon Mobil Corp. and Chevron Corp., the biggest U.S. oil companies, were among the biggest contributors to the advance as crude jumped 7.2 percent to trade above $50 a barrel for a third day. Exxon rose $2.78, or 3.6 percent, to $80.89l; Chevron was up $3.40, or 4.4 percent, to $79.93.
General Motors Corp., which will make its case for federal bailout funds after today's Thanksgiving holiday, rallied 35 percent, or $1.25, to $4.81. Ford Motor Co., the second-biggest, rallied 30 percent to $2.15.
The market overcame an early tumble spurred by the day's government reports depicting a deepening recession.
"The market has very bad economic data coming out, but layered onto that is renewed optimism from the Obama nominations that are being rolled out daily," said Robert Lutts, president of Cabot Money Management in Boston. "Eternal hope is being poured into that vessel, that this team is going to rescue us."
Target Corp. and Kohl's Corp. led store chains, as the S&P 500 retail index rose 5.9 percent before the start of the holiday shopping season tomorrow.