Wall Street jumps to 14-month highs
Wednesday, 16 December 2009
NEW YORK, Dec 15 (CNNMoney.com): Stocks gained Monday, with the three leading indexes closing at 14-month highs, after Citigroup said it will pay back government bailout funds and Dubai received $10 billion to cover its debt, easing worries the emirate might default on billions it owes.
The weak dollar also helped, lifting commodity shares and the stocks of companies that do a lot of business overseas.
The Dow Jones industrial average rose 30 points, or 0.3 per cent, closing at the highest point since Oct 1, 2008.
The S&P 500 index gained 8 points, or 0.7 per cent, closing at the highest point since Oct 2, 2008. The Nasdaq composite rose 22 points, or 1 per cent, closing at the highest point since Sept 19, 2008.
After propelling the market off of 12-year lows hit in March, the S&P 500 has risen 64 per cent as of Friday's close.
"The market has shown some extraordinary strength here, but I think we're moving into a period of greater volatility," said Don DeWaay, CEO at DeWaay Capital Management.
"This market is running a lot more on emotion now, rather than fundamentals," he said.
The Dow closed at a 14-month high Friday after better-than-expected reports on retail sales and consumer sentiment, but broader gains were limited by tech weakness and a strong dollar.
Citigroup said Monday that it will return $20 billion in bailout money to the government through a combination of stock and debt offerings.
The weak dollar also helped, lifting commodity shares and the stocks of companies that do a lot of business overseas.
The Dow Jones industrial average rose 30 points, or 0.3 per cent, closing at the highest point since Oct 1, 2008.
The S&P 500 index gained 8 points, or 0.7 per cent, closing at the highest point since Oct 2, 2008. The Nasdaq composite rose 22 points, or 1 per cent, closing at the highest point since Sept 19, 2008.
After propelling the market off of 12-year lows hit in March, the S&P 500 has risen 64 per cent as of Friday's close.
"The market has shown some extraordinary strength here, but I think we're moving into a period of greater volatility," said Don DeWaay, CEO at DeWaay Capital Management.
"This market is running a lot more on emotion now, rather than fundamentals," he said.
The Dow closed at a 14-month high Friday after better-than-expected reports on retail sales and consumer sentiment, but broader gains were limited by tech weakness and a strong dollar.
Citigroup said Monday that it will return $20 billion in bailout money to the government through a combination of stock and debt offerings.