U.S., Overseas Stocks Rise, Gold Slips
From Staff Reports
U.S. stocks soared yesterday (Thursday) on a better-than-expected unemployment report and a “super-sized” boost to McDonald Corp.’s (MCD) dividend payout. General Motors Corp. (GM) and Microsoft Inc. (MSFT).
The Dow Jones Industrial Average rocketed 168.59 points, or 1.27%, to close at 13,460.24. The broader Standard & Poor’s 500 Index climbed 16.98 points, or 1.15%, to finish trading at 1,488.54. The tech-focused Nasdaq composite index added 18.87 points, or 0.73%, to finish the day at 2,610.94.
A dismal August jobs report issued on Sept. 7 surprised the market and prompted fears the economy – and sent share prices into a tailspin. It boosted expectations for an interest rate cut by the U.S. Federal Reserve’s policymaking arm at its Sept. 18 meeting.
But yesterday it was reported that for the week of Sept. 8 jobless claims rose by 4,000 to a total of 319,000 while the previous week’s numbers were revised lower to 315,000. Economists had been expecting jobless claims to total 325,000.
The euro was valued at $1.3880 Thursday, slightly off Wednesday’s record highs against the U.S. dollar, according to Standard & Poor’s, which also said that the price of gold fell to $718.10 per ounce, down $2.60.
Among stocks in the news on Thursday, McDonald’s gained 5.6%, thanks to its decision to lift its 2007 dividend by 50%, to $1.50 per share. Microsoft, another Dow 30 stock, increased its quarterly payout 11 cents, an increase of 10%. The shares were higher by 0.7%. And General Motors (GM) jumped 8.2% yesterday after a Citicorp analyst upgraded the stock to a “buy.”
In Europe, stocks rose. In France, the CAC 40 index rose 1.05% to close at 5,565.97.
In Great Britain, the FTSE 100 index gained 0.91% to close at 6,363.9. And in Germany, the DAX index rose 0.84% to finish trading at 7,535.97.
In Asia, the Shanghai composite index rose 1.95% to finish trading at 5,273.59.
Japan’s Nikkei 225 Index rose 0.15% to close at close at 15,821.19. The Hong Kong Hang Seng Index climbed 0.93% and closed at 24,537.02.
News and Related Story Links:
- Standard & Poor’s:
Stocks Rally on Claims, Dividend News. - The Associated Press:
Oil Closes Above $80 for the First Time. - The Associated Press:
Stocks Rise on Countrywide, GM News. - CNNMoney:
Fed Can’t Stop Recession.
