Stocks rose Tuesday after the Boeing Company and the industrial equipment maker, Illinois Tool Works said they were seeing demand for their products. þþThe Dow Jones industrial average rose about 100 points in morning trading. Major stock indexes all rose about 1 percent. þþAt the same time, a gain in the euro and an advance in European stock markets signaled that traders around the world are less worried that debt problems will disrupt a global recovery. þþThe climb in. stocks was broad, but industrials made some of the biggest advances. Boeing rose 2.8 percent after increasing production for production of the 737 jet. Boeing said customers were adding to existing orders and placing new ones. Illinois Tool rose about 1.1 percent after it raised the lower end of its fiscal second-quarter earnings target. þþ“We’re still seeing factories and manufacturing help provide a little stimulus for the economy here,” said Michael Church, president at Addison Capital Group in Philadelphia. þþTraders shrugged off a weaker-than-expected earnings report from the electronics chain Best Buy Its shares fell 5.6 percent. þþStocks drew strength from gains in European markets, which reversed early losses and pushed higher. The euro rose to $1.2319 in an indication that traders are more confident that European governments can slash debt without spoiling an economic rebound. þþThe drop in the dollar against the euro increase commodities prices because they become more affordable for overseas buyers when the dollar falls. That, in turn, increases demand. þþThe initial drop in overseas stocks came a day after Moody’s cut its rating on Greece’s debt to “junk” status. þþTraders in the United States initially had little reaction to the report Monday afternoon, but a broad gain in stocks faded by the close. Major stock indexes ended mixed after the downgrade and after the Standard & Poor’s 500-stock index failed to push above its average close of the last 200 days. That was a crucial technical level watched by traders. Trading below that level is seen as a sign of weakness in the market. þþThe advance Tuesday extends the choppy trading that has become a fixture in the market since major stock indexes climbed to their 2010 peaks in late April. Stocks have been logging big swings since then, a sign that traders are uncertain about whether the economy will continue to recover. þþAt midday, the Dow rose 123.87, or 1.22 percent. The broader Standard & Poor’s 500-stock index rose 14.21, or 1.3 percent, and the Nasdaq rose 38.58, or 1.7 percent. þþBond prices edged higher, pushing down interest rates. The yield on the benchmark 10-year Treasury note fell to 3.25 percent from 3.26 percent late Monday. þþCrude oil rose 80 cents, to $75.92 a barrel in New York trading. þþBoeing climbed $1.79, or 2.8 percent, to $66.61, while Illinois Tool rose 51 cents, or 1.1 percent, to $46.16. þþBest Buy’s fiscal first-quarter net income and revenue fell short of analysts’ expectations but the company reiterated its fiscal 2011 forecast. The report brought concerns that consumers will cut spending and hurt a United States recovery. Best Buy fell $2.30, or 5.6 percent, to $38.75. þþShares of BP fell 42 cents, or 1.4 percent, to $30.25 after the credit ratings agency, Fitch, cut its rating on the oil company’s debt. Fitch cited concerns about rising costs tied to the Gulf of Mexico oil spill that began April 20 when a rig operated by BP exploded. þþBP shares fell 10 percent Monday after concerns grew about stepped-up political pressure in the United States to set aside money for costs related to the spill. þþIn afternoon trading, Britain’s FTSE 100 climbed 0.6 percent, Germany’s DAX index rose 1 percent and France’s CAC-40 rose 1.2 percent. Earlier, Japan’s Nikkei stock average finished up 0.1 percent. þþ
Source: NY Times
