Wednesday, February 16, 2011

S&P rises, doubles its 2009 low

The S&P 500 rose to twice its value from just two years ago, a bounce whose vigor has not been seen since the Great Depression.

The Dow Jones industrial average gained 61.53 points, or 0.50 percent, to 12,288.17. The Standard & Poor's 500 Index rose 8.31 points, or 0.63 percent, to 1,336.32. The Nasdaq Composite Index added 21.21 points, or 0.76 percent, to 2,825.56.

European shares rose to a 29-month closing high for the third successive day, driven by strong results from French bank Societe Generale and brewer Heineken.

The pan-European FTSEurofirst 300 closed 0.5 percent at 1,186.13 points, while the DAX rose 0.2 percent but the German index may be ripe for a pull back, with the relative strength index reaching 75.3, which is considered overbought.

Japan's Nikkei average climbed to a nine-month high above 10,800 helped by a softer yen, with the benchmark's strong run encouraging foreign investors to broaden their buying to financial shares.

The Nikkei average ended the day up 0.6 percent or 61.62 points at 10,808.29, after hitting an intraday high of 10,842.31, its highest since May 6, 2010. Immediate resistance now lies at its May 6 intraday high of 10,847.90, traders said.

The broader Topix rose 0.5 percent to 967.30.