Stocks surge; Hewlett-Packard leads Dow higher
Friday, April 13, 2012
NEW YORK (AP) — Encouraging signs from two of the most important zones of the world economy, the powerhouse of China and the debt-burdened countries of Europe, drove the Dow Jones industrial average up 181 points Thursday, its second-biggest gain this year.
China’s central bank reported a surprising jump in loans in March. That eased concerns about a sudden slowdown in the Chinese economy, whose growth has helped pull the globe out of recession.
Italy’s government easily sold $6.4 billion in bonds to investors. After the auction, borrowing rates for Italy fell, European stock indexes reversed earlier declines and worries about the continental debt crisis eased, at least for the day.
“European governments have a mountain of debt coming due early this year,” said John Canally, investment strategist at LPL Financial in Boston. “Some of what you’re seeing today in markets is a bit of relief that they’re working through it.”
In New York, the Dow Jones industrial average climbed 1.4 percent to close at 12,986.58. It was the Dow’s biggest jump since March 13 and put the average within sight of clearing 13,000 again.
After the market closed, Google reported earnings that were ahead of analysts’ estimates and said it would issue a new class of non-voting stock to shareholders. Google rose 0.5 percent in aftermarket trading.
On Wednesday the stock market snapped out of a five-day slump, its longest and deepest of the year. Investors were worried about European debt, slower job growth and the Federal Reserve’s resistance to taking further steps to boost the economy.
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