US STOCKS-Wall Street climbs after China data, Fed comments

Wed Nov 11, 2009 10:33am EST
 
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* Fed officials suggest rates will stay low for some time

* Chinese factory output growth surges to 19-month high

* US bond market, government offices closed for holiday

* For up-to-the-minute market news, click [STXNEWS/US] (Updates to early morning)

By Angela Moon

NEW YORK, Nov 11 (Reuters) - U.S. stocks climbed on Wednesday as optimism spread after a jump in Chinese factory growth and comments from Federal Reserve officials suggested interest rates would remain low well into 2010.

Major indexes rose 1 percent or more, and the Dow Jones industrial average was on track for a sixth consecutive day of gains and a fresh 13-month high.

Chinese factory output growth jumped to a 19-month high in October, signaling that the world's third-largest economy has firmly put the worst of the global economic crisis behind it. For details, see [ID:nPEK212006]

Top Fed officials said in a string of speeches on Tuesday that high unemployment and reluctant consumers would likely make a U.S. economic recovery weak and erratic, underscoring belief that economic stimulus will remain intact. [ID:nN10315173]

"The market is not budging down, even after the big surge earlier this week, because the Fed keeps reassuring that rates would be low for a considerably period of time," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville, Tennessee.

Shares of United Parcel Service Inc (UPS.N), the world's largest package delivery service, gained 1 percent to $57.43 after its chief executive forecast volume to grow next year as the global economy gradually recovers. [ID:nSIN517117]

The Dow Jones industrial average .DJI was up 68.39 points, or 0.67 percent, at 10,315.36. The Standard & Poor's 500 Index .SPX was up 8.97 points, or 0.82 percent, at 1,101.98. The Nasdaq Composite Index .IXIC was up 20.30 points, or 0.94 percent, at 2,171.38.

Commodity prices also got a boost, with crude oil futures CLc1 rising 1.3 percent to $80.04 a barrel.

Macy's Inc (M.N) shares tumbled 5.4 percent to $18.38 after the company reported third-quarter results that were stronger-than-expected but gave a gloomy outlook on same store sales for the fourth quarter. [ID:nWNAB4388]

U.S. Treasury Secretary Timothy Geithner said on Wednesday he "deeply" believes the United States needs to maintain a strong dollar and said the United States was determined to reduce its budget deficit. [ID:nT335432] But the dollar extended its recent decline to a 15-month low against major currencies in early trading.  Continued...

 

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