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US STOCKS-Markets rise 1 percent on economic optimism
June 9, 2010 / 5:19 PM / 7 years ago

US STOCKS-Markets rise 1 percent on economic optimism

* Bernanke: Recovery appears to be on solid footing

* China exports unofficially top expectations

* Texas Instruments sees results at high end of forecast

* Dow up 1 pct, S&P up 1.2 pct, Nasdaq up 1.4 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to early afternoon)

By Ryan Vlastelica

NEW YORK, June 9 (Reuters) - U.S. stocks rose on Wednesday, with the Dow back above 10,000, as Federal Reserve Chairman Ben Bernanke’s comments about the economy and reports of greater Chinese exports spurred hopes for a global recovery.

Bernanke, appearing before the House Budget Committee, said the economic recovery appeared to be on solid footing and that while a double-dip recession “can never be entirely ruled out,” he expects the economy to continue growing. For details, see [ID:nWAL9HE68B]

“The real fear lately has been that we’re headed for a double-dip, and Bernanke has sort of taken that out of the equation,” said Andy Fitzpatrick, director of investments at Hinsdale Associates in Hinsdale Illinois.

Chinese exports surged about 50 percent in May from a year earlier, sources told Reuters. The sharp gain would suggest the risk of a Chinese economic downturn is very small. The report, which will be officially released on Thursday, fueled a rise in global markets. [ID:nTOE65805R].

“People were concerned that a slowdown in China would add to the problems facing the global economy, so this robust number is certainly encouraging,” said Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville.

The Dow Jones industrial average .DJI was up 103.31 points, or 1.04 percent, at 10,043.29. The Standard & Poor's 500 Index .SPX was up 12.33 points, or 1.16 percent, at 1,074.33. The Nasdaq Composite Index .IXIC was up 30.50 points, or 1.41 percent, at 2,201.07.

Investors could obtain more clues about the economy’s health when the Fed’s Beige Book summary of economic conditions is released at 2 p.m. (1800 GMT).

Tech lifted the Nasdaq after Texas Instruments Inc TXN.N said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers. [ID:nN08218836]

The stock gained 1.7 percent to $24.28 while the PHLX Semiconductor index .SOXX rose 2.2 percent.

Energy shares advanced after data from the government said crude oil inventories fell more than expected in the last week. [ID:nN0948252]. July U.S. crude futures CLc1 shot up 3.7 percent to $74.62 per barrel and the S&P index of energy shares .GSPE gained 1.5 percent.

Ciena Corp CIEN.O jumped 5.3 percent to $14.58 after the communications equipment maker said its second-quarter loss was narrower than expected and noted that customer spending was recovering. [ID:nN09122731]

In deal news, Allscripts-Misys Healthcare Solutions Inc (MDRX.O) agreed to buy Eclipsys Corp ECLP.O in a $1.3 billion deal. Eclipsys shares rose 1.8 percent to $18.85, while Allscripts fell 9.4 percent to $16.70. [ID:nLDE6580C2] (Reporting by Ryan Vlastelica; Editing by Kenneth Barry)

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