The following is an excerpt from NOEL RANDEWICH | May 10, 2015 | reuters.com |
U.S. stocks rose across the board on Tuesday, with a jump in oil and a rally in Amazon.com helping propel the S&P 500 to its best day in two months.
Buoyed as well by higher global stock markets, Wall Street's gains appeared to breathe new life into a two-month rally that had petered out in mid-April, and left the S&P 500 with an increase of nearly 2 percent for 2016.
Amazon (AMZN.O) jumped 3.43 percent to a record of $703.07, giving the biggest boost to the S&P 500 and the Nasdaq. Bernstein raised its price target on the stock to $1,000, the highest on Wall Street, saying it believes Amazon's margins will expand much faster than currently expected.
All 10 major S&P sectors gained and seven of them were up over 1 percent, led by a 1.75 percent rise in the energy index .SPNY. Oil rose over 4 percent as supply disruptions in Canada and elsewhere overshadowed fears of oversupply.
International stock markets were helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken the yen.
"A great triple-digit day, it's fantastic," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "People are feeling confident."
With first-quarter earnings reports almost all in and not quite as bad as expected, investors have become more optimistic that the profit recession that has weighed on large-cap stocks for almost a year may be losing its grip.
The proportion of companies that have raised their forecasts versus those that lowered forecasts is the healthiest it has been since 2011, according to Thomson Reuters data.
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