1:00 PM – Stocks in New York traded higher for the third day in a row after solid earnings reports from Ameriprise, Dupont, Netflix, Travelers and United Technologies. New home sales increased 1.5% in March. On the economic front, the euro zone and China manufacturing outlook suggested weak economic activities.
Stocks in New York trading gained for the third day in a row on solid earnings reports from Netflix, Travelers, Ameriprise, du Pont and United Technologies.
The S&P 500 index increased 1% to 1,578.72 and the Dow Jones Industrial Average added 1% to 14,716.80.
The tech heavy Nasdaq Composite Index increased 1.2% to 3,273.62.
U.S. New Home Sales Rise 1.5%
New home sales increased 1.5% to an annual rate of 417,000 in March according to the latest data released by the Commerce Department. The annual pace increased from the 411,000 in February.
For the quarter to March, new home sales averaged a 424,000 annual rate, the strongest since the third quarter of 2008.
New home sales increased 17.6% in March compared to a year ago month when not adjusted for seasonal factors.
Sales in the Northeast increased 20.6% in March and jumped 19.4% in the South. Sales declined 12.1% in the Midwest and dropped 20.9% in the West.
Gloomy World Economic Outlook
Outside trading, the news from the world economies was far from positive. The latest preliminary data for the euro zone business activities suggested ongoing recessionary trends and German economy may take longer than expected.
However, the weak read on manufacturing prompted a rally in stock market indexes on a speculation that the central bank may be forced to lower interest sooner than expected and as early as the next meeting on May 2.
The latest preliminary survey for April business activities in China also suggested weaker than expected expansion and on a weakness in new export orders in the month.
European markets advanced on speculation of ECB rate cut and stronger company earnings, however, the euro zone output in April stagnated largely because of weakness in Germany. Bond yields across the currency union declined.
The FTSE 100 in London surged 2%, in Frankfurt, the DAX rose 2.4%, and the CAC-40 index in Paris soared 3.6%.
The preliminary read on manufacturing in China suggested weakening business activities in April. The latest survey conducted by HSBC and Markit indicated the index at 50.5 points compared to 51.6 points in March.
The reading above indicates expansion.
The Nikkei 225 Stock Average slid 0.3%, the Hang Seng index declined 1.1% and Sensex in India was nearly unchanged.