U.S. Stocks Gain on Durable Goods

U.S. stocks rose for a second day after orders for durable goods unexpectedly advanced in July and analysts said new investments by Fannie Mae and Freddie Mac will boost their earnings.

Alcoa Inc. and Boeing Co. each climbed about 2 percent after the Commerce Department report bolstered expectations that the economy is recovering. Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, rallied more than 11 percent each. Crude's advance of more than $1 a barrel pushed up 31 of 39 energy producers in the Standard & Poor's 500 Index.

The S&P 500 added 10.33 points, or 0.8 percent, to 1,281.84 at 3:03 p.m. in New York, with all 10 of its industries gaining. The Dow Jones Industrial Average climbed 98.93, or 0.9 percent, to 11,511.8. The Nasdaq Composite Index increased 26.64 to 2,388.61. Four stocks advanced for each that fell on the New York Stock Exchange.

The 1.3 percent gain in durable goods orders defied economist forecasts for an unchanged reading in July. Stock futures fell before the Commerce Department report as a third day of gains in oil spurred concern that crude's rebound from a more than 20 percent tumble since July will threaten profits at consumer, transportation and technology companies.

The S&P 500 is up 1.2 percent in August after falling in June and July. The benchmark index for U.S. equities has posted only two monthly gains since reaching a record in October and is down almost 13 percent this year.

U.S. Stocks Gain on Durable Goods

TradingEconomics.com, Bloomberg
8/27/2008 12:23:42 PM