New York: US stocks rose on Wednesday, with the Dow back above 10,000, as Federal Reserve chairman Ben Bernanke’s comments about the economy and reports of greater Chinese exports spurred hopes for a global recovery.
Bernanke, appearing before the House Budget Committee, said the economic recovery appeared to be on solid footing and that while a double-dip recession “can never be entirely ruled out,” he expects the economy to continue growing.
“The real fear lately has been that we’re headed for a double-dip, and Bernanke has sort of taken that out of the equation,” said Andy Fitzpatrick, director of investments at Hinsdale Associates in Hinsdale Illinois.
Chinese exports surged about 50% in May from a year earlier, sources told Reuters. The sharp gain would suggest the risk of a Chinese economic downturn is very small. The report, which will be officially released on Thursday, fueled a rise in global markets..
“People were concerned that a slowdown in China would add to the problems facing the global economy, so this robust number is certainly encouraging,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.
The Dow Jones industrial average was up 103.31 points, or 1.04%, at 10,043.29. The Standard & Poor’s 500 index was up 12.33 points, or 1.16%, at 1,074.33. The Nasdaq Composite index was up 30.50 points, or 1.41%, at 2,201.07.
Investors could obtain more clues about the economy’s health when the Fed’s Beige Book summary of economic conditions is released at 2 pm (1800 GMT).
Tech lifted the Nasdaq after Texas Instruments Inc said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers.
The stock gained 1.7% to $24.28 while the PHLX Semiconductor index rose 2.2%.
Energy shares advanced after data from the government said crude oil inventories fell more than expected in the last week.. July US crude futures shot up 3.7% to $74.62 per barrel and the S&P index of energy shares gained 1.5%.
Ciena Corp jumped 5.3% to $14.58 after the communications equipment maker said its second-quarter loss was narrower than expected and noted that customer spending was recovering.
In deal news, Allscripts-Misys Healthcare Solutions Inc agreed to buy Eclipsys Corp in a $1.3 billion deal. Eclipsys shares rose 1.8% to $18.85, while Allscripts fell 9.4% to $16.70.