This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
NEW YORK (
TheStreet) -- Stocks soared Thursday, extending this week's dizzying up-and-down action, as the
Dow Jones Industrial Average retraced much of its recent decline with help from modest improvement in employment data and a strong quarterly report from
The last five sessions have made for the largest one-day percentage moves in the history of the Dow.
The blue-chip index finished up 423 points, or 3.9%, at 11,143. The
S&P 500 was higher by 51.8 points, or 4.6%, at 1172, and the
Nasdaq advanced 111.6 points, or 4.7%, to close at 2492.
"It's like a basketball game," said Paul Nolte, director of investments with Dearborn Partners. "I don't think we will see a v-shaped pattern to the upside but it would be nice if markets could settle into a 4% to 5% trading range instead of moving on a daily basis by that much."
Technology stocks were a bright spot after Cisco posted
better than expected earnings late Wednesday and broke with its pattern of disappointing guidance, saying it sees year-over-year revenue growth of as much as 4% in the quarter. The stock jumped more than 15% to top the Dow.
Financial stocks also showed strong gains with
Bank of America(BAC) and
JPMorgan Chase(JPM - Get Report) among the Dow's biggest gainers alongside
Bank of America gained 7% on news that it had held exploratory talks with sovereign investment funds in Kuwait and Qatar
to raise capital by selling a $17 billion stake in
China Construction Bank. Electronic traded fund
Financial Select Sector SPDR (XLF) closed ahead 5.6% at $12.87.
"We're tracking the relationships between different sectors," said Nolte. Healthcare, consumer and utilities stocks started to outperform the market in April, but the trend may reverse with energy and materials stocks starting to outperform, he explained. "We normally see an ebb and flow in the course of three to 12 months" between stocks and bonds, and between different sectors, Nolte said.
All 30 companies on the Dow traded in positive territory on a day that saw 82% of the 7 billion shares that traded on the
New York Stock Exchange rising and only 18% declining. Some 2.9 billion stocks changed hands on the Nasdaq.
Volatile trading following news that an Asian bank had severed credit lines to major French lenders gave way to substantial gains after the Labor Department reported
initial jobless claims fell unexpectedly
to a four-month low in the first week of August.
News that French President Nicolas Sarkozy and German Chancellor Angela Merkel will hold an emergency meeting on Tuesday to discuss options to strengthen the eurozone helped European markets close higher. The FTSE in London rose 3.1%, the DAX in Frankfurt jumped 3.1% and the CAC-40 in Paris gained 2.9%.
"The bottom line is the market is trying to discount all of the worst negative scenarios," said Peter Cardillo, chief market economist at Rockwell Global Capital. "We need to see the European Central Bank take firm leadership and provide some substance to alleviate the fear factor -- and I think that's coming."
In an attempt to calm recent market volatility, officials in Europe will put a temporary ban on short-selling of European stocks after the close today, according to news reports. The effectiveness of short-selling bans at curbing volatility is yet to be seen.
Earlier, Hong Kong's Hang Seng closed down by 1%, and Japan's Nikkei lost 0.6%.
The benchmark 10-year Treasury, which has rallied as of late, slipped 1 9/32, lifting the yield to 2.33%. An unsuccessful 30-year bond sale compared to the well-received Treasury auctions earlier this week pushed yields on the 30-year up to 3.79%. The dollar weakened against a basket of currencies, with the dollar index down by 0.3%.