The Dow jumped 250 points Wednesday as stocks rallied around the globe on a stream of strong economic news, both abroad and in the U.S., as well as on a less anxious outlook for European sovereign debt.

The Dow Jones Industrial Average ($INDU) gained 2.3% to close at 11,256. The blue-chip index hit an intraday high of 11,276, led by by United Technologies (UTX), Home Depot (HD), Caterpillar (CAT) and Boeing (BA).

The broader S&P 500 ($INX) rose 19 points, or 1.6%, to 1,206. The tech-heavy Nasdaq Composite ($COMPX) added 51 points, or 2.1%, to finish at 2,549.

The biggest news on the domestic front came from private sector hiring, which hit its highest level in three long years. Private employers created 93,000 jobs last month, according to Automatic Data Processing's (ADP) national employment report. Just as important, October's gain was revised substantially higher, which "shows an acceleration of employment and suggests the nation's employment situation is brightening somewhat," ADP said.

The Rally Started in China


A better-than-expected reading on U.S. construction spending also stampeded the bulls, as did an upward revision to U.S. productivity in the third quarter. General Motors (GM) helped rev up traders with double-digit November sales gains. The nation's No. 1 automaker, fresh off its initial public offering, said sales rose 11.4% versus a year ago. Among its four core brands, Buick, Cadillac, GMC and Chevrolet, GM said sales rose nearly 21%. Auto sales for the wider U.S. car industry also showed some zip.

But the global rally started in Asia overnight after a China state manufacturing index showed that the nation's economy is expanding at an accelerating rate. The upturn in Asia spread to Europe, helped by remarks from the European Central Bank indicating it could step up bond purchases of its more debt-troubled nations.

"Well, we certainly won't have to wait long for the ECB to launch [quantitative easing] for PIIGS," Ed Yardeni, president of Yardeni Research, told clients in a note, referring to the wobbly finances of Portugal, Ireland, Italy, Greece and Spain.

A rising euro helped weigh on the dollar. The U.S. Dollar Index, which measures the greenback against a trade-weighted basket of six major currencies, fell as much as 0.9% at one point in the session, a large move in currency terms. The flight to risk also hurt Treasurys, as the yield on the benchmark 10-year Treasury note jumped to 2.97% from a close of 2.80% Tuesday. (Bond yields and prices move in opposite directions.)

With the dollar down and the risk-trade back on, energy and commodities also rose Wednesday. Gold traded on the Comex division of the New York Mercantile Exchange (CME) added $3 to settle at $1,388 an ounce. Benchmark crude oil closed up $2.56, or 3%, to $86.67 a barrel.


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crazy ray

Why do stocks either plummet or sky rocket? They never seem to just go up or down. Don't you people have any other words in your thesaurus?

December 02 2010 at 6:52 AM Report abuse rate up rate down Reply
Robert & Lisa

Isn't it funny how people seem to get jobs right before their unemployment benefits run out no matter how long those benefits are paid? George Soros's Demoncrat puppets, Obama and thugs strike again.

December 02 2010 at 6:01 AM Report abuse +2 rate up rate down Reply
kamdajani

wall street crooks cook the dow daily on bs bought news by the bankrupted newscorp that owns the dow jones.no wonder our national debt soaring to the extent our government start looking to increase age of retirement and cut medicare benefits.what a scam how dusgusting.

December 02 2010 at 5:34 AM Report abuse rate up rate down Reply
kamdajani

v

December 02 2010 at 5:29 AM Report abuse rate up rate down Reply
stevenjw777

When i was a kid my family vacationed in the south. I never knew what the phrase "THE SOUTH SHALL RISE AGAIN" meant. Now 30 yrs later i know exactly what it means!

December 02 2010 at 3:15 AM Report abuse rate up rate down Reply
2 replies to stevenjw777's comment
debsdot

We'll of course if I were on your feet at that time, I also don't know about it! Even a single idea what it means! But when we grew up our level of understanding is also getting mature. But anyway, yes I also heard about it! They are really great country!

December 02 2010 at 4:01 AM Report abuse rate up rate down Reply
debsdot

That's right! great that they have good set of leaders..I guess.. http://www.couponcodesdiscounts.info

December 02 2010 at 4:02 AM Report abuse rate up rate down Reply
mikfete58

Wow! Service sector jobs (McDonalds, Wal-Mart and Target) jobs really picked up, just in time for the Holidays! Next month, fewer people will be receiving unemployment benefits, so this will look like FEWER are unemployed since they will roll off unemployment assistance and get those high paying jobs out there! This is just more "FALSE" positive news in an economy that is in a depression. STOCK MARKET CRASH COMING SOON!

December 02 2010 at 1:52 AM Report abuse +3 rate up rate down Reply
ultraz2

Banks should be forced to firesale forclosures at what ever they will bring at an absolute auction. Forclosures are lierally decomposing as we speak. The value of forclosures is going down as nature attacks those life after people homes.

December 02 2010 at 1:09 AM Report abuse +3 rate up rate down Reply
ultraz2

Unemployment running out---crimes going up. Why because LESS JOBS IN USA.

December 02 2010 at 12:33 AM Report abuse +5 rate up rate down Reply
2 replies to ultraz2's comment
bdyftns

you can thank the Repukes for that. Keep the rich getting richer and keep making the middle and lower classes poorer.

December 02 2010 at 1:06 AM Report abuse rate up rate down Reply
mikfete58

The "Repukes" did not have as much to do with unrmployment running out as you think. I believe that the DEMOCRATS control the House and Congress until January, dumbass!

December 02 2010 at 1:54 AM Report abuse +4 rate up rate down Reply
ultraz2

TEABAGGERS are a bunch of republicans that are trying to highjak the teaparty movement and disable it. True tea party members are independents on a mission. They are neither democrats or republicans, but independents tired of a crooked corrupt US GOVERNMENT on Capitol Hill. TERM LIMITS NOW

December 02 2010 at 12:27 AM Report abuse +6 rate up rate down Reply
1 reply to ultraz2's comment
bdyftns

Tea baggers are hardly Independents. The only candidates they endorsed were Republicans, no matter how bad they were.

December 02 2010 at 1:04 AM Report abuse +1 rate up rate down Reply
ultraz2

Yea, article said DOW jumped skyward. Right, so high it knowed down a few satelites. I wondered what happened to HBO, now I know.

December 02 2010 at 12:22 AM Report abuse +1 rate up rate down Reply