NEW YORK (Reuters) - Stocks climbed broadly on Monday after a report showed the manufacturing sector expanded for a fifth straight month, lifting confidence in the global economy as investors eye fourth quarter earnings.
The rally, which marked the first trading day of 2010, drove both the Dow and the S&P 500 to their highest closes in 15 months, while the Nasdaq ended at a 16-month high.
The Institute for Supply Management's manufacturing index rose to its highest level since April 2006 in December. The report followed similarly strong readings from the commodity-hungry manufacturing sectors in China and India overnight.
That and a weaker U.S. dollar helped push natural resource stocks higher as commodity prices rose.
"The ISM number was very, very good, and we think it points to continuing strengthening and overall, bodes relatively well in the near-term for the market," said Karl Mills, president of Jurika, Mills and Keifer, an investment advisory firm in Oakland, California.
The Dow Jones industrial average gained 155.91 points, or 1.50 percent, to end at 10,583.96. The Standard & Poor's 500 Index rose 17.89 points, or 1.60 percent, to 1,132.99. The Nasdaq Composite Index jumped 39.27 points, or 1.73 percent, to 2,308.42.
STAR TURN FOR OIL AND MATERIALS
Energy and materials were the top sectors in the S&P 500 as those stocks got a lift from the prospect of stronger manufacturing, which would increase demand for fuel, electricity, metals and some other commodities.
Oil companies' shares got a further boost after Deutsche Bank upgraded the U.S. refining sector and raised the ratings on several refiners, including Valero Energy Corp and Sunoco Inc.
Valero jumped 6.8 percent to $17.89, and Sunoco advanced 6 percent to $27.67. The PHLX Oil Service index climbed 3.9 percent.
The Institute for Supply Management said its index of national factory activity rose to 55.9 in December, above forecasts for a reading of 54.3. A reading above 50 indicates expansion.
Both of China's PMI manufacturing surveys rose in December, with the official reading hitting its highest level in 20 months. That was echoed in India, where the manufacturing index hit a 7-month peak last month.
Analysts said the reports gave welcome support as investors head into fourth-quarter earnings season later in January. U.S. stocks rose last month after the U.S. unemployment rate unexpectedly fell in November.
U.S. crude oil futures rose 2.2 percent, or $2.15, to settle at $81.51 per barrel after hitting a 2-month high earlier in the session. The U.S. dollar fell 0.5 percent against a basket of currencies. Copper hit a 16-month high.
Currency traders were cautious about the greenback before Friday's non-farm payrolls report, which investors are looking to for confirmation of further stabilization in the labor market.
HIGH HOPES FOR CHIPMAKERS
Robert W. Baird upgraded chipmaker Intel Corp to "outperform" on expectations for a rebound in corporate spending on personal computers. That helped drive the Philadelphia semiconductor index up 1.7 percent.
Intel, a Dow component and a bellwether on Nasdaq, climbed 2.4 percent to $20.88.
Volume, although modest, appeared to be the best since December 22nd, with most market participants back at work on Monday after a long holiday break.
About 1.01 billion shares changed hands on the New York Stock Exchange, below last year's daily average of 2.18 billion.
On the Nasdaq, about 1.95 billion shares traded.
Advancing stocks outnumbered declining ones on the NYSE by a ratio of 4 to 1, while on the Nasdaq, nearly 11 stocks rose for every three that fell.
bu reuters.com
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Selasa, 05 Januari 2010
2009 Was One of Worst Years on Record for Bankruptcies
U.S. consumers and businesses are filing for bankruptcy at a pace that made 2009 the seventh-worst year on record, with more than 1.4 million petitions submitted, an Associated Press tally showed Monday.
broke
The AP gathered data from the nation's 90 bankruptcy districts and found 1.43 million filings, an increase of 32 percent from 2008. There were 116,000 recorded bankruptcies in December, up 22 percent from the same month a year before.
While experts believe some of the increase is due to a natural recovery as consumers and attorneys become accustomed to a recent overhaul of bankruptcy laws, the numbers indicate clear correlations to recession-weary regions. Arizona saw the fastest increase, a jump of 77 percent from the year before, followed by Wyoming (60 percent), Nevada (59 percent) and California (58 percent).
Emile Harmon, who owns a law firm in Tempe, Ariz., said the firm has doubled its staff to handle the surge in bankruptcy filings. The lawyers have been steadily shifting away from their other areas of business, civil lawsuits and divorce cases.
"Bankruptcy is kind of swallowing the whole practice." Harmon said. "There's little time to do other stuff."
There's also no sign that things are slowing down. Harmon said bankruptcies have been coming in waves, first with those 18 months ago who had adjustable-rate mortgages, then with those who lost their jobs due to the housing downturn. Now he's finding wealthy individuals and business owners who have finally succumbed to lower incomes and shrinking home values.
"A lot of the people we see were in a really good financial position two years ago," Harmon said. "People really look at you and say, 'I can't believe I'm here."'
For three years, filings have been steadily rising back toward levels reached early in the decade before Congress overhauled the nation's bankruptcy laws. The 2005 alterations made bankruptcy filings more cumbersome, a move that followed fears from lenders that some consumers were abusing the system to wipe away debts.
Bankruptcies surged to slightly more than 2 million in 2005 as consumers rushed to file before the new law took effect but then plummeted to 600,000 in 2006. They've been climbing ever since and in 2009 became the seventh-highest year on record, behind only the years 1998 and 2001-2005.
The 2005 spike had been preceded by a steady climb from 1.5 million in 2001 to 1.6 million in 2005.
John Pottow, a bankruptcy professor at the University of Michigan, said the return to the highs of earlier this decade illustrates the failures of the 2005 overhaul bill. He said the measure largely made filings more costly and time-consuming by forcing consumers to undergo a paperwork-heavy test to determine eligibility for Chapter 7 bankruptcy and adding liability for attorneys who provide help.
"It never made sense in the first place that you could change the laws and make all these bankruptcies go away," said Pottow, who would like to see the 2005 law changes repealed. "If people are encountering financial distress, you can only scare them away for so long before they come back again."
While every state saw a rise in bankruptcies, Alaska (up 12 percent), Nebraska (12 percent) and North Dakota (14 percent) performed best.
by cnbc.com
broke
The AP gathered data from the nation's 90 bankruptcy districts and found 1.43 million filings, an increase of 32 percent from 2008. There were 116,000 recorded bankruptcies in December, up 22 percent from the same month a year before.
While experts believe some of the increase is due to a natural recovery as consumers and attorneys become accustomed to a recent overhaul of bankruptcy laws, the numbers indicate clear correlations to recession-weary regions. Arizona saw the fastest increase, a jump of 77 percent from the year before, followed by Wyoming (60 percent), Nevada (59 percent) and California (58 percent).
Emile Harmon, who owns a law firm in Tempe, Ariz., said the firm has doubled its staff to handle the surge in bankruptcy filings. The lawyers have been steadily shifting away from their other areas of business, civil lawsuits and divorce cases.
"Bankruptcy is kind of swallowing the whole practice." Harmon said. "There's little time to do other stuff."
There's also no sign that things are slowing down. Harmon said bankruptcies have been coming in waves, first with those 18 months ago who had adjustable-rate mortgages, then with those who lost their jobs due to the housing downturn. Now he's finding wealthy individuals and business owners who have finally succumbed to lower incomes and shrinking home values.
"A lot of the people we see were in a really good financial position two years ago," Harmon said. "People really look at you and say, 'I can't believe I'm here."'
For three years, filings have been steadily rising back toward levels reached early in the decade before Congress overhauled the nation's bankruptcy laws. The 2005 alterations made bankruptcy filings more cumbersome, a move that followed fears from lenders that some consumers were abusing the system to wipe away debts.
Bankruptcies surged to slightly more than 2 million in 2005 as consumers rushed to file before the new law took effect but then plummeted to 600,000 in 2006. They've been climbing ever since and in 2009 became the seventh-highest year on record, behind only the years 1998 and 2001-2005.
The 2005 spike had been preceded by a steady climb from 1.5 million in 2001 to 1.6 million in 2005.
John Pottow, a bankruptcy professor at the University of Michigan, said the return to the highs of earlier this decade illustrates the failures of the 2005 overhaul bill. He said the measure largely made filings more costly and time-consuming by forcing consumers to undergo a paperwork-heavy test to determine eligibility for Chapter 7 bankruptcy and adding liability for attorneys who provide help.
"It never made sense in the first place that you could change the laws and make all these bankruptcies go away," said Pottow, who would like to see the 2005 law changes repealed. "If people are encountering financial distress, you can only scare them away for so long before they come back again."
While every state saw a rise in bankruptcies, Alaska (up 12 percent), Nebraska (12 percent) and North Dakota (14 percent) performed best.
by cnbc.com
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