Friday
December 15, 2017
Friday, April 10, 2015

GE sparks broad Wall St rally; indexes post weekly gains

The Dow Jones industrial average rose 98.92 points, or 0.55 percent, to 18,057.65.
The Dow Jones industrial average rose 98.92 points, or 0.55 percent, to 18,057.65.
The Dow Jones industrial average rose 98.92 points, or 0.55 percent, to 18,057.65.

US stocks ended a strong week with a broad rally today as investors lauded GE's decision to divest most of its high-risk GE Capital business and repurchase up to $50 billion of its shares.

All 10 primary S&P 500 sectors ended up on the day but the S&P Industrials index, driven by gains in GE shares, was by far the best performer and rose 1.5 percent.

General Electric rose 10.8 percent to $28.51, hitting its highest level since September 2008 after it said there was potential to return more than $90 billion to investors through 2018. Friday marked the biggest one-day jump for the stock, as well as the most active session, since March 2009. More than 351 million shares changed hands, making GE the most active name on the New York Stock Exchange by far.

The Dow Jones industrial average rose 98.92 points, or 0.55 percent, to 18,057.65, the S&P 500 gained 10.88 points, or 0.52 percent, to 2,102.06 and the Nasdaq Composite added 21.41 points, or 0.43 percent, to 4,995.98.

For the week, the Dow is up 1.6 percent, the S&P is up 1.7 percent and the Nasdaq is up 2.3 percent. Both the Dow and S&P notched their second straight week of gains, helped by a pickup in merger activity.

Across the Atlantic, and buoyed by gains in Asia and the renewed drop in the euro, the pan-European FTSEurofirst 300 share index reached a 15-year high of over 1,640 as its ninth week of rises in the last 10 took it to its highest since 2000. Germany's DAX also scored a record high.

Meanwhile, Japan's Nikkei share average topped the psychological 20,000-point mark for the first time in 15 years on hopes of stronger corporate earnings, and gained 2.4 percent on the week.

The Nikkei rose as high as 20,006 before ending down 0.2 percent at 19,907.63.

The rally has been driven by many factors, including hopes of higher shareholder returns, a rise in corporate earnings, a recovery in domestic consumption and more share buying, both real and imagined, by Japanese public investors.

The market expects Japanese earnings to rise 10 to 15 percent this year, but with the Nikkei already up 14 percent so far this year, some investors see limited justification to chase them much higher.

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Tags:  US  stock market  Europe  Nikkei  





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