Stocks gained momentum and notched big gains by midday Thursday after a report showed jobless claims had declined and officials said negotiations for a Greek debt rescue package were progressing.
By 12:50 p.m. the Dow Jones Industrial Average had climbed 144 points to 11189, it’s largest one-day rise since Feb. 16. The S&P 500 had picked up 17 to reach 1208, and the Nasdaq had gained 34 at 2506.
The gains were fairly widespread. Financials, capital goods, health care and materials made substantial gains. Energy stocks were flat.
The Labor Department said in its weekly report that initial claims for jobless benefits declined by 11,000 to 448,000 in the week ended April 24. That matches the predictions of economists surveyed by Dow Jones. The previous week’s level was revised slightly upward to 459,000 from 456,000.
The dollar fell against the euro after European Union Commissioner for Economic and Monetary Affairs Olli Rehn said he is confident talks over a package of loans to help Greece unravel its spiralling debts will be completed in coming days.
The package will be a “multi-annual program that will lead to a major fiscal and also structural adjustment,” he said in a statement. It will give Greece “sufficient breathing space from the pressures of the financial markets to decisively restore the sustainability of its public finances and to put the economy back on the path of growth,” he added.
The U.S. Dollar Index, reflecting the U.S. currency against a basket of six other currencies, fell 0.5%. Treasurys also declined, pushing the yield on the 10-year note up to 3.77%. Meanwhile, crude-oil futures climbed above $84 a barrel, though gold futures fell.
Among stocks in focus, Hewlett-Packard (HPQ) announced plans to acquire Palm (PALM) in a $1.2 billion deal, ending rumors about what would happen to the once-pioneering smartphone maker. H-P is paying $5.70 a share, a 23% premium to Wednesday’s closing price. Palm shares surged on hte news, but H-P slipped.
Crude oil futures rose $1.90 to $85.12 a barrel.
Dow Jones Newswires contributed to this report.
Similar Posts:
- StockScope: Hewlett-Packard to Acquire Palm (StockScope)
- Dollar Rise Dings Stock Gains (Market Update)
- Goldman Woes, Data Tank Stocks (Market Update)
- Dow Finishes Below 11K on Debt Concern (Market Update)
- Is a Roth Conversion Right for You?
