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Dow Jones hits 2009 high

10 November 2009 09:10 (UTC +04:00)

Baku- APA-Economics. US stocks surged Monday, with the blue-chip Dow Jones industrial average reaching a new closing high for 2009, the Business Week reported.

The basic materials, industrial, and financial sectors led the way after finance ministers from the Group of 20 industrialized nations pledged at a weekend meeting to keep money flowing with economic stimulus plans.

A flood of money and low interest rates are a "magic elixir" for stocks, says S&P MarketScope.

On Monday, the 30-stock Dow Jones industrial average finished higher by 203.52 points, or 2.03%, at 10,226.94, eclipsing its previous 2009 closing high of 10,092.19 on Oct. 19.

The broad Standard & Poor’s 500-stock index was up 23.78 points, or 2.22%, at 1,093.08. The tech-heavy Nasdaq composite index gained 41.62 points, or 1.97%, to 2,154.06.

On the New York Stock Exchange, 25 stocks were higher in price for every five that declined. Breadth on the Nasdaq was 18-8 positive. But trading was only moderate, suggesting some skepticism, according to S&P.

Among the skeptics: Ed Yardeni. "I am running into more equity portfolio managers who are fully invested bears. They are fully invested because they’ve learned not to fight the Fed, which seems committed to keeping the federal funds rate at zero for the foreseeable future," wrote the president of Yardeni Research in a note Monday.

Treasuries ended mixed after a successful $40 billion refunding auction of three-year notes Monday.

The dollar index fell, nearing a 15-month low. There was no specific mention of currencies in the G-20 statement.

Gold futures finished higher, though below the record highs above the $1,100 per ounce level set earlier in Monday’s session.

Oil futures were higher on fears that Hurricane Ida could disrupt Gulf of Mexico production.

Benchmark stock indexes in Europe rallied Monday, with London’s FTSE 100 index up 1.80%, France’s CAC-40 higher by 2.11%, and Germany’s DAX index rising 2.40%.

Asian markets finished in the green Monday. Tokyo stocks rose 0.20%, Hong Kong climbed 1.73%, and Shanghai gained 0.36%.