US Stocks rallied overnight as gold skyrocketed above $1,200 for the first time ever, housing data pointed towards further improvement in the sector and boosted confidence in the recovery, and concerns for Dubai’s debt problems eased.
The Dow Jones Industrial Average rose 127 points to 10,472. The S&P500 Index is 13 points higher at 1,109 and the NASDAQ added 31 points to 2,176.
In economic news: The Institute for Supply Management’s November manufacturing index fell to a read of 53.6 from 55.7 in October. Economists had expected only a slight fall to 55. Any read above the 50 mark indicates expansion.
The National Association of Realtors released a report showing that pending home sales rose 3.7% in October.
And the government reported that construction spending in October remained unchanged after falling 1.6% in September. Expectations were for a fall of 0.5%.
In company news: Shares in insurance company American International Group Inc (NYSE:AIG) gained 8.59 per cent to $30.84. The company announced plans to sell stakes in two of its life insurance subsidiaries to the Federal Reserve Bank of New York to help it pay back $25 billion of debt owed to the government.
Shares in technology, media and financial services company General Electric Company (NYSE:GE) added 0.94 per cent to $16.17. CNN Money reports that GE is to acquire Vivendi SA’s 20% stake in NBC Universal in a deal worth around $5.8 billion. CNN says that the move is part of the company’s joint venture plan with Comcast to create a media giant.
Shares in office supplies chain Staples Inc (NASDAQ:SPLS) rose 4.8 per cent to $24.44. The company reported earnings for the third quarter that came in above expectations. CFO John Mahoney says the company expects to see stronger holiday sales this year as it increases its marketing and promotions.
And shares in automaker Ford Motor Company (NYSE:F) declined 0.11 per cent to $8.88. The company reported sales that were flat for November compared to the same time last year and says it hopes to ramp up production in North America in the first quarter by 58%.
In the NASDAQ Top 100: Staples was the best performer on the Nasdaq overnight, its price as mentioned before, followed by Applied Materials and NII Holdings. The worst performer was Apollo Group shares down 2.21% to $55.81, while Dell and eBay also closed lower.
