Stocks rallied sharply Friday after a better-than-expected reading on manufacturing and encouraging news out of Europe assuaged investors' fears over the possibility of a double-dip recession.

The blue-chip Dow Jones Industrial Average ($INDU) rose 198 points, or 1.9%, to close at 10,860. A surprise jump in August orders for durable goods peaked traders' interest in the industrial sector. Dow components Alcoa (AA), Caterpillar (CAT) and Boeing (BA) popped more than 3% to 4%.

The broader S&P 500 ($INX) added 24 points, or 2.1%, to 1,149, putting it on the cusp of its next technical hurdle at the 1,150 level. The more volatile, tech-heavy Nasdaq Composite ($COMPX) jumped 54 points, or 2.3%, to finish at 2,381.

Stocks Extend Winning Streak

After languishing over the last few sessions, equities managed to extend their winning ways to a fourth consecutive week, the longest sustained rally since late April when the markets hit their last peaks. Encouraging economic news at home and abroad gave equities a lift, but volume was once again light.

Doreen Mogavero, CEO, co-founder and head of floor trading at Mogavero, Lee & Co., says the market may be starting to reflect the possible outcome of the November mid-term election in light of the results of this week's primaries.


Durable Goods Boost Confidence

Although August's 1.3% drop in durable goods orders looked like a decidedly downbeat report, the real story was that the more-telling component that excludes volatile transportation orders rose 2%, doubling a economists' average estimate.

The rally at home followed strong gains in Europe overnight, which was touched off by a report that German business confidence unexpectedly vaulted to a three-year high.


Investors flight back to riskier assets hurt bonds and the U.S. dollar, while gold prices continued their remarkable upward climb.

The yield on the benchmark 10-Year Treasury note, which moves in the opposite direction of price, climbed above 2.6% level. The ICE U.S. Dollar index, which measures the greenback against a trade-weighted basket of foreign currencies, fell below 80 for the first time since April.


Gold prices continued to soar Friday, as the most actively traded gold contract on the Comex of the New York Mercantile Exchange (NYX) settled just two dollars shy of $1,300 an ounce. Copper and oil prices also rose Friday.



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sksnyder25

Did none of you people read the article? Wall Street is global. Stocks are rising because of increased manufactured goods in Europe. Obama doesn't have a thing to do with this. Stop blaming him because Wall Street hates Obama and the financial regulations he and the Democrats have put into place so they can never destroy our financial system again. Wall Street is putting all their support behind Republicans because they have vowed to repeal this law thus allowing another financial meltdown due to Wall Street and their ponzi schemes that took place while Bush was president and now we are all paying for them.

September 29 2010 at 2:28 PM Report abuse rate up rate down Reply
dhggifg

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September 28 2010 at 9:55 AM Report abuse rate up rate down Reply
feathermegirl

Oh yeah? The stocks are showing down right now at 10:10am Monday morning.

September 27 2010 at 10:13 AM Report abuse +1 rate up rate down Reply
beemerboxer

I seem to recall that when President Clinton was in office the stock market went through the roof and everyone thought how great the economy was under Bill. It was as if the stock market was manipulated to suit the political needs of the day. President Obama's administration is currently under fire and needs some kind of boost to minimise damage in the coming elections. Could it be that the DOW will hit 12,000 by early November or has this old cynic finally blown the mind? Nothing will bolster the President's "we can do it" slogan like a quick shot at restoring middle class portfolios and pension funds, thus healing some of the damage done by a depressed stock market in recession. Even Tea Party members with pensions and portfolios will smile!

September 27 2010 at 10:10 AM Report abuse +1 rate up rate down Reply
Mike

What a JOKE!! What a SHAM!!! The economy is failing apart all around us and the ABSURD fools in the market drive it up. To all you DOLTS who OBVIOUSLY live in Fantasyland, have a nice UNREAL life. As did the housing market the past few years and the ABSURD market of 2000 have shown reality, so will it come to you dolts. Hang on for a VERY sharp drop!

September 27 2010 at 9:58 AM Report abuse -1 rate up rate down Reply
judymills777

Stock market riseing?? Just Another lie from wal St. and Washington. Election is coming and the GOVERNMENT is trying to run it UP. Well, won't work, people are SICK of OBAMA and his "LAP DOGS", NOTHING can save the DEMS in NOV. Theire A-- is GONE!!!l

September 27 2010 at 9:17 AM Report abuse rate up rate down Reply
lpi2007

Dow Vaults 198 Points on Strong Manufacturing Data, OK I MISSED SOMETHING, ON THIS SAME PAGE DOESN'T IT SAY NEW HOUSING MARKET IS AT A LOW IN OVER 40 YEARS ? THOUSANDS AND THOUSANDS OF PEOPLE LOSING THEIR HOUSE AND LIVING OUT IN THE STREETS AND OF COURSE THE DOW JONES GOING UP, HAHAHAHAHAHAHA IF THIS DOESN'T SHOW EVERYONE WHAT KIND OF GOVERNMENT WE HAVE NOTHING WILL, THIS WORLD IS SCREWED UP AND AS FOR THE WRITERS OF THESE ARTICLES ON AOL, YOU NEED TO CLEAN OUT YOUR CRACK PIPE AND COME DOWN BACK TO EARTH. LOUISVILLE PARANORMAL INVESTIGATIONS ARE THE CAST OF SHADOWS OF KENTUCKY NOW ON WBKI AKA THE CW CHANNEL, CHECK US OUT

September 27 2010 at 7:55 AM Report abuse -2 rate up rate down Reply
demsareforsale

GOP Victory November 2010

September 26 2010 at 12:12 PM Report abuse rate up rate down Reply
onemightylight

Argue with yourself, I got offline for a reason. I have a family and it's Saturday night in my time zone. I'll have more fun with them than with you, drag. Complain to your heart's content----and feel silly, all alone! Like I said, if you had a spine you'd have posted when the board was active. You and the bugs come out after the lights go off! ===== 'Nite!

September 25 2010 at 11:56 PM Report abuse +3 rate up rate down Reply
jdrumerrnr

Only 25 percent of the "get-outs" favor requiring health insurance companies to sell coverage to people regardless of pre-existing medical conditions, while 54 percent of the "do-mores" support it. The law requires insurers to cover children regardless of health problems starting this year, and that protection is extended to people of all ages in 2014.

September 25 2010 at 11:53 PM Report abuse -4 rate up rate down Reply