Amazon.com Inc. rose 10 percent after research firm ComScore Inc. said Internet purchases at U.S. retailers increased 15 percent on Dec. 1. Morgan Stanley and Pulte Homes Inc. climbed more than 13 percent as government cash injections into the mortgage market spurred the increase in home-loan applications. Freeport-McMoRan Copper & Gold Inc. slid 17 percent as the largest public copper company cut production and suspended its dividend amid dramatic” price drops.
The Standard & Poor’s 500 Index climbed for the seventh time in eight days, rallying 2.6 percent to 870.72 after earlier sliding as much as 2.5 percent. The Dow Jones Industrial Average added 172.6, or 2.1 percent, to 8,591.69. The Nasdaq Composite increased 2.9 percent to 1,492.38. Almost three stocks rose for each that fell on the New York Stock Exchange.
European stocks rose for a second day as speculation central banks will step up efforts to revive the economy outweighed concern a deepening recession will stifle profit growth.
The Dow Jones Stoxx 600 Index added 0.6 percent to 198.29, erasing earlier declines of as much as 2.5 percent. More than $31 trillion has been erased from the value of global equities as the collapse of the U.S. mortgage market sparked financial turmoil that pushed economies into recession.
National benchmarks rose in 14 of the 18 western European markets today. The FTSE 100 added 1.1 percent. France’s CAC 40 gained 0.4 percent, and Germany’s DAX climbed 0.8 percent.