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Dow up about 250, back in black for 2015

Dow up about 250, back in black for 2015

The Dow’s gain Wednesday of around 250 points not only puts it on track to end a four-session losing skid, but it also puts the blue-chip stock index on pace for its best one-day gain since a 267-point jump back on May 8. Market indexes by the afternoon- Dow: Up 1.4%, a gain of 255 points to more than 18,000. It’s now back in the black for 2015. S&P 500: Up 1.3%. Nasdaq: Up 1.5%

 

Energy stocks led a broad rally. In the bond market, prices continued to slide, pushing the yield on the benchmark 10-year Treasury yield closer to the 2.5% level. Oil sold on the U.S. market is ticking up, now back above the $60-per-barrel level. Netflix shot to an all-time high on a potential stock split on its high per-share price tag. NFLX is up 4.5% on the day, to $677.30.

The Dow Jones industrial average’s big May 8 jump came as investors reacted to a strong April jobs report following a super-weak reading on jobs in March. “After four straight session in the red, the Dow has bounced back wth a vengeance today,” Andrea Kramer, an analyst at Schaeffer’s Investment Research, noted in a midday market update. Kramer says the bullish price action is being driven by tech and energy issues as well as a drop in the value of the U.S. dollar vs. a basket of foreign currencies, which makes exports from U.S. firms more affordable.

The rally is also gaining steam, adds Kramer, from “reports” that “Germany could unlock aid” for debt-strapped Greece if (Athens) “agrees to at least one economic reform.” The mere hint of a thaw in the deadlock between Greece and its eurozone creditors is being viewed as a major positive by Wall Street. However, stocks — which some on Wall Street had said are becoming “oversold” on Greece fears and concerns over when the Federal Reserve will start hiking short-term interest rates — are still stuck in a multi-month trading range.

In Europe, Germany’s DAX, recently knocked into correction territory, skyrocketed 2.5%. France’s CAC-40 jumped 1.8% higher and Britain’s FTSE 100 index ended up 1.1%. Japan’s Nikkei 225 index fell 0.25% to close at 20,046.36 and Hong Kong’s Hang Seng index plunged 1.1%. The Shanghai Composite lost 0.15%.

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