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Stock rebound gains traction, Dow jumps

4:24 PM, Jun 26, 2013   |    comments
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By Kim Hjelmgaard, USA TODAY

Stocks rose for a second straight day Wednesday as a report that economic growth was smaller than originally estimated helped boost the bond market.

The Dow Jones industrial average index jumped 150 points, or 1.0%, to 14,910, according to preliminary calculations. The Standard & Poor's 500 index gained 15, or 0.9%, to 1,603 and the Nasdaq composite index rose 28, or 1.0%, to 3,376.

A stampede out of U.S. government bonds reversed course Wednesday after the government reported that the U.S. economy grew at an annual rate of 1.8% in the first three months of the year, significantly lower than the previous estimate of 2.4%.

The yield on the 10-year Treasury note, a benchmark for many kinds of loans, fell to 2.53% from 2.61% late Tuesday. The yield has risen sharply over the last week as traders sold bonds in anticipation of the Fed winding down its bond-buying program. It was 2.19% on June 18, the day before the Fed outlined its plans.

The price of gold Wednesday fell up to 4.2% to $1,224.18 an ounce, the lowest level since Aug. 24, 2010, says Bloomberg News

Benchmark oil for August delivery was up 10 cents to $95.41 a barrel in electronic trading on the New York Mercantile Exchange.

On Tuesday, the Dow rose 0.7% to 14,760.31. The S&P 500 index rose 1% to 1,588.03. The Nasdaq composite added 0.7% to 3,347.89.

European stocks closed higher, boosting investor confidence as the global market continues to pick itself up. In Great Britain, the FTSE 100 rose 1% to close at 6,165 and Germany's DAX jumped 1.7% to close at 7,941. France's CAC 40 advanced about 2.1% to finish the day at 3,726.

The Stoxx Europe 600 index closed higher by 1.9% to end at 285 as investors pushed the benchmark higher for the second day in a row.

Japan's Nikkei 225 ended down 1% at 12,834.01. The Shanghai composite index declined 0.8% to 1,943.43.

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