Market Close: Stocks Rise After Larry Summers Exits Fed Chair Race

Obama Senior Economic Advisor Lawrence Summers Interview
Bloomberg via Getty ImagesLawrence 'Larry' Summers
NEW YORK -- Stocks closed higher Monday after former Treasury Secretary Larry Summers withdrew from the race to become head of the Federal Reserve. Summers had been expected to move aggressively to rein in the Fed's huge economic stimulus program.

The Dow Jones industrial average rose 118 points, or 0.8 percent, to close at 15,494 Monday. The Standard & Poor's 500 index rose nine points, or 0.6 percent, to 1,697. The Nasdaq composite fell four points, or 0.1 percent, to 3,717, pulled down by Apple.

The president is expected to nominate Ben Bernanke's successor as early as this month. The current front-runner is Janet Yellen, the Fed's vice chair.

Two stocks rose for every one that fell on the New York Stock Exchange. Volume was average at 3 billion shares.

Also, oil prices were mostly higher after a deal between the U.S. and Russia over getting rid of Syria's chemical weapons. Crude oil for October delivery fell $1.62 to $106.59 a barrel in New York.

Among companies making big moves:

• Homebuilders rose as investors were encouraged by a decline in long-term interest rates. The biggest gainer in percentage terms was PulteGroup (PHM), up 62 cents, or 3.8 percent, to $17.14.

• Boise (BZ) rose $2.60, or 26 percent, to $12.56 after news that Packaging Corp. of America (PKG) is buying it for $1.27 billion. Packaging Corp. rose $5.88, or 10.8 percent, to $60.43.

• Apple (AAPL) continued to slide after investors were disappointed with the company's latest iPhone models introduced last week. Apple lost $14.78 20, or 3.2 percent, to $450.12.

Trading in stock options was halted for less than an hour Monday afternoon because of a problem with their price-reporting system.

Summers' withdrawal helped stocks overseas, too. The FTSE 100 index of leading British shares was up 0.6 percent. Germany's DAX rose 1.2 percent, and the CAC-40 in France was 0.9 percent higher.


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k4jlp

One more thing then I have to go to work so I can give my tax money to the IRS so they can give it away to other Countries. There is nothing that pisses me off more than grown ups hurting little children like what happened in Syria. I would LOVE to see a rocket or two from a Navy ship go right down the pike of the ass Assad's Palace, what goes around comes around baby.

September 17 2013 at 7:16 AM Report abuse rate up rate down Reply
k4jlp

Mrs. Betty,
Obama does not want a war, even if he did 75% (or more) of Americans have had enough of us being the worlds policeman. The ONLY folks wanting war are the warmongering Republicans, the MIC and the traders of crude futures so they can buy low and sell high. We are not stupid. When I say warmongering Republicans, the first names that come to mind are Lindsey and Mcain. "The Market" is nothing more than a way for the rich to transfer wealth to THEM using fear of "what might happen", again, we are not stupid.

September 17 2013 at 7:04 AM Report abuse rate up rate down Reply
k4jlp

Gosh darn, what to do with all those crude futures. No war to jack the prices, to dump or not to dump is the question.

September 16 2013 at 7:43 PM Report abuse +1 rate up rate down Reply
1 reply to k4jlp's comment
betty_brock

Just wait. Obama wants a war.

September 16 2013 at 9:00 PM Report abuse -4 rate up rate down Reply
1 reply to betty_brock's comment
betty_brock

Dummy, Obama has tried to push Congress into bombing Syria.

September 16 2013 at 9:18 PM Report abuse -1 rate up rate down
mizrableoldfart

Bu bye. If they taper their stimuli, this country is in very big trouble.

September 16 2013 at 7:03 PM Report abuse -1 rate up rate down Reply
1 reply to mizrableoldfart's comment
betty_brock

The stimuli is funny money. They just keep printing and what you have is worth less and less.

September 16 2013 at 9:01 PM Report abuse -2 rate up rate down Reply
1 reply to betty_brock's comment
betty_brock

NO, this is all Obama's disaster. We libs just don't want to admit it.

September 16 2013 at 9:18 PM Report abuse -2 rate up rate down
betty_brock

The market is up. The market is down. The market is up. The market is down. Invest in yo yos.

September 16 2013 at 6:19 PM Report abuse -2 rate up rate down Reply
1 reply to betty_brock's comment
classof68gto

That is what the market does if you know anything about investing which appears you do not.

September 16 2013 at 11:11 PM Report abuse +3 rate up rate down Reply
dearthaircroi

Of course the market went up , they now know the gravey train for the banks and wallstreet will continue.

September 16 2013 at 5:52 PM Report abuse -1 rate up rate down Reply
DaveH

I can not believe Obama would of ever, nominated Larry Summer . This criminal is one of many in the private sector that caused the Stock Market clash and housing market crash. Check out the 2011 Documentary "INSIDE JOB" He should be in jail, along with Carl Hubbard, Hank Poulson, Ben Bernanke , Janet Yellen,and a dozen more. These our some of the crooks that need to be in jail.

September 16 2013 at 5:39 PM Report abuse +2 rate up rate down Reply
1 reply to DaveH's comment
betty_brock

along with Obama.

September 16 2013 at 6:17 PM Report abuse -2 rate up rate down Reply
boowah

The GOP must be in mourning! They were so looking forward to the Fed pulling back on bond buying so that our economy could enter an austerity period. The more poverty they create, the wider the wealth gap gets.

September 16 2013 at 4:57 PM Report abuse +1 rate up rate down Reply