US STOCKS-Wall St jumps as G20 pledges liquidity

Mon Nov 9, 2009 2:11pm EST
 
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* G20 pledge to keep aid flowing until recovery reassured

* Investors bullish as healthcare bill moves to Senate

* GE, Comcast see $30 bln valuation on NBC-Comcast JV

* Dow up 1.7 pct, S&P up 1.8 pct, Nasdaq up 1.6 pct * For up-to-the-minute market news, click [STXNEWS/US] (Updates to afternoon)

By Edward Krudy

NEW YORK, Nov 9 (Reuters) - U.S. stocks jumped on Monday, pushing the Dow industrials to their highest level in more than a year, as the Group of 20 leaders pledged to keep aid flowing to their economies until a recovery was certain.

The agreement from G20 finance ministers and central bankers over the weekend boosted global stocks while pressuring the dollar as appetite for riskier assets resurfaced. [ID:nLQ516726] and [ID:nL9362990]

The falling dollar gave fresh impetus to commodity-linked stocks that benefit from a weaker U.S. currency.

Pharmaceutical and health insurance stocks also rose as investors bet that health reform measures will be softened after a bill calling for a public insurance option and a government role in drug prices narrowly passed its first hurdle.

Stocks rose last week even as the unemployment rate in the United States rose to 10.2 percent. Some investors said rising unemployment would make it harder for the Federal Reserve and the U.S. government to rein in liquidity and stimulus measures as the recovery takes hold.

"The G20 simply put an exclamation point on that reality," said Craig Peckham, equity trading strategist at Jefferies & Company in New York, who said the easy money was lifting stock prices.

The S&P 500 is up about 61 percent from a 12-year closing low in early March.

The Dow Jones industrial average .DJI gained 173.67 points, or 1.73 percent, to 10,197.09. The Standard & Poor's 500 Index .SPX added 19.68 points, or 1.84 percent, to 1,088.98. The Nasdaq Composite Index .IXIC rose 34.15 points, or 1.62 percent, to 2,146.59.

Gold miners' stocks moved sharply higher as spot gold hit a new record high, driven by the weaker dollar and concerns that loose monetary policy would eventually devalue currencies.

The NYSE Arca Gold BUGS index .HUI, which measures the performance of 15 gold producers with U.S.-traded shares, rose 4.4 percent. Newmont Mining Corp (NEM.N) the world's No. 2 gold producer, based in Denver, rose 3.2 percent to $50.64.  Continued...