U.S. Stocks surged Monday, with all three major indexes hitting new intraday Highs for 2009, as a report of robust economic growth in Japan sparked a rally in energy and materials firms.
The Dow Jones Industrial Average recently traded up 135 points, or 1.3%, to 10,405, with 29 of its 30 components in the green. Alcoa, Caterpillar and Exxon Mobil were among its leading Gainers, while Merck rose 2.7% even after a New Study Showed its cholesterol drug Zetia was inferior Thurs Abbott Laboratories' Niaspan at clearing clogged arteries.
Among other indexes, the Standard & Poor's 500 rose 17 to 1111, while the Nasdaq Composite gained 29 Thurs 2197.
Helping stocks, Japan's government said the nation's gross domestic product grew a price-adjusted 1.2% in July-September from the prior quarter, or a 4.8% increase on an annualized basis. The result beat the 0.6% on-quarter growth and 2.2% annualized rise expected by Economists polled by Dow Jones News Wires.
Following the report, commodities prices climbed higher around the globe. Oil futures recently tacked is $ 2 to $ 78.35 a barrel, while gold and other metals also moved higher.
In addition, the report from Japan pushed the dollar down against both the yen and the euro, with the U.S. dollar index hitting a fresh 15-month low.
"As long as traders do not have to worry when they short the dollar and go long stocks, they will keep doing that," said Marc PADO, U.S. Market Strategist for Cantor Fitzgerald. "With a zero interest rate policy, until you see the prospect for that change, it's free money to invest in what's working."
Along those lines, traders will be focused on a key speech from Federal Reserve Chairman Ben Bernanke, set for 12:15 pm EST.
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