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US stocks rise on promise of more stimulus

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(Globalpost/GlobalPost)

US stocks moved solidly higher Monday on expectations of continued economic stimulus measures by central banks.

About 40 minutes into trade, the Dow Jones Industrial Average rose 72.93 points (0.52 percent) to 14,073.50.

The broad-based S&P 500 increased 9.16 (0.60 percent) to 1,524.76 while the tech-rich Nasdaq Composite Index jumped 22.48 points (0.71 percent) to 3,184.29.

The increases followed comments Friday by St. Louis Federal Reserve President James Bullard that the US easy-money policy would continue.

In addition, on Monday Japanese media reported that Japan's prime minister plans to appoint as central bank chief Haruhiko Kuroda, the president of the Asian Development Bank, who is viewed as favoring continued stimulus.

Briefing.com analyst Patrick O'Hare observed the importance of central bank support outweighs other news, such as the Italian election -- the tentative results of which buoyed European markets -- and the downgrade of the United Kingdom's credit rating by Moody's.

Home improvement retailer Lowe's fell 0.6 percent despite reporting earnings that bested analyst expectations.

Natural gas giant Chesapeake Energy Corp. fell 2.7 percent after it announced it was selling a stake in some natural gas properties to Chinese company Sinopec for $1.0 billion.

US shares of British oil giant BP were off 1.3 percent in anticipation of a much-watched trial that kicks off Monday in New Orleans over the company's 2010 Gulf of Mexico oil spill.

Biopharmaceutical company Affymax lost 84 percent after announcing a nationwide recall of a medicine used to treat anemia following serious hypersensitivityy reactions in some patients.

Bond prices fell. The yield on the 10-year bond rose to 2.00 percent from 1.97 percent late Friday, while the 30-year rose to 3.19 percent from 3.16 percent Friday. Bond prices and yields move inversely.

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http://www.globalpost.com/dispatch/news/afp/130225/us-stocks-rise-promise-more-stimulus-0