US stocks rallied overnight with the Dow Jones gaining over 100 points after investors showed optimism over second quarter results, and reports that lender CIT Group has secured financing to keep it out of bankruptcy also gave Wall St a boost.
The Dow Jones industrial average rose 104 points to 8,848. The S&P500 Index is 11 points higher at 951 and the NASDAQ added 23 points to 1,909. In economic news: The Conference Board reports that the index of leading economic indicators rose 0.7 per cent in June after a rise of 1.2 per cent in May. Economists had expected a 0.5 per cent rise.
In company news: Shares of lender CIT Group Inc (NYSE:CIT) surged 78.57 per cent to $1.25. The company’s shares soared on news it had approved a deal for a $3 billion loan from bondholders in an effort to keep the company out of bankruptcy. After receiving $2.3 billion in government bailout funds the company has had to fend for itself with the government saying it would provide no additional funds.
Communications and information technology company Cisco Systems Inc (NASDAQ:CSCO) shares rose 3.12 per cent to $21.15. Credit Suisse lifted its rating on the company from ‘neutral’ to ‘outperform’. According to Reuters Credit Suisse says that data suggests improving business trends at Cisco throughout the quarter. Shares in road building equipment maker Astec Industries Inc (NASDAQ:ASTE) fell 1.09 per cent to $25.45. The company posted a fall in earnings and revenue for the second quarter, the result impacted by weakness in the company’s underground business.
And shares in biopharmaceutical company Orexigen Therapeutics Inc (NASDAQ:OREX) rallied 26.54 per cent to $7.20. Reuters reports that the company’s drug for obesity, Contrave, met the co-primary and secondary endpoints in a Phase III trial.
Checking the NASDAQ Top 100: The best performer overnight was Wynn Resorts which added 10.12 per cent to $39.83. Ryanair Holdings and Intuitive Surgical also closed higher. On the downside, the worst performer was Xilinx which lost 1.43 per cent to $19.97. Stericycle and Altera Corp also closed weaker.
