The Dow Jones industrial average was up 108.30 points, or 1.12 percent, at 9,791.71. The Standard & Poor’s 500 Index was up 16.13 points, or 1.53 percent, at 1,068.76. The Nasdaq Composite Index was up 30.51 points, or 1.45 percent, at 2,133.15.Yesterday, U.S. stocks rose for a third day, hitting fresh 2009 highs in a broad-based rally following economic data that suggested a stronger-than-anticipated global recovery. Among the strongest were Energy and manufacturing, who benefited from data indicating improved industrial demand and a falling dollar. Yesterday, European shares rose 1.3 percent with the main FTSEurofirst 300 index closing above the 1,000 mark for the first time in more than 11 months. The index was led by banks and commodity stocks. The Nikkei gained 173.03 points to 10,443.80, a one-week closing high, while the broader Topix rose 0.9 percent to 939.52. Japan’s Nikkei stock average rose 1.7 percent on Thursday, buoyed by exporters although banking shares weighed on the market.
In August, U.S. industrial output advanced for a second consecutive month, while last week a government report showed a bigger-than-expected drop in crude inventories, indicating higher demand. A Federal Reserve report said industrial production increased 0.8 per cent after gaining one per cent in July. The data came a day after Fed Chairman Ben Bernanke said the economic slump was very likely over. Industrial activity last month was boosted by car manufacturing as the “cash for clunkers” program, encouraged a jump in sales and prompted many carmakers to ramp up output. Encouraging macro-economic figures also supported the market. U.S. retail sales climbed 2.7 percent in August after declining 0.2 percent in July. It was the biggest monthly advance since January 2006 and well above the market expectations.

Due for release today there are, GBP retail sales, EUR Euro-Zone Trade Balance, Euro-Zone Construction Output, GBP U.K. CBI Industrial Trends Total Orders, Cad Consumer Price Index, CAD Bank Canada Consumer Price Index, CHF Swiss National Bank Interest Rate, CAD Leading Indicators and USD Housing Starts.

By Greg Secker

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