Stocks begin Q2 higher after better-than-expected economic reports
NEW YORK -- Wall Street began the second quarter on solid footing Wednesday as better-than-expected economic reports helped the market extend a four-week rally.
The reports showed: A measure of manufacturing activity shrank for a 14th straight month in March, but at a slower pace than expected. Pending home sales rose in February, and construction spending fell for a fifth month in February but not as much as expected.
Not all of the reports came as a relief though. The ADP National Employment Report said private sector employment dropped by 742,000 in March. The figure was higher than anticipated, and a rattling sign ahead of the Labor Department's Friday report on nationwide job cuts last month.
Investors were also watching as finance ministers from around the world meet in London to discuss the sagging global economy.
Speculation has risen in recent days that the various countries in the Group of 20 are disagreeing about how to handle the global financial crisis. But as thousands of protesters gathered in London, British Prime Minister Gordon Brown said the G-20 was close to agreeing on global reforms of the financial system.
According to preliminary calculations, the Dow rose 152.68, or 2.0%, to 7,761.60.
The Standard & Poor's 500 index rose 13.21, or 1.7%, to 811.08. The technology-heavy Nasdaq composite index gained 23.01, or 1.5%, to 1,551.60.
The Russell 2000 index of smaller companies rose 0.13, or less than 0.1%, to 422.88.
Advancing issues outnumbered decliners by nearly 3 to 1 on the New York Stock Exchange, where volume came to 901.9 million shares.
Financial stocks led the market higher, followed by big gains in the technology and energy sectors. As sentiment about the economy improves, investors have been buying up industries they believe are likely to lead the country out of recession.
The Dow charged ahead in March, rising 16% off of 12-year lows hit early in the month, but its movements over the first three months of the year have been among the most tumultuous on record. Only three other times in the Dow's history has it experienced 20% swings in both directions in one quarter.
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