Thursday, October 04 15:53:44
U.S. stocks rose for a fourth session today following encouraging comments by European Central Bank President Mario Draghi on tools to tackle the region's debt crisis and in support of the euro.
Financial shares led the market higher after Draghi said the ECB was ready to buy the bonds of euro zone member countries that ask for it, leaving the door open to a widely expected bailout of Spain.
"Draghi has not disappointed the markets today," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"The dollar is weak and we see risk coming back into the market," said Cardillo, referring to Draghi's comment that the euro is "irreversible" in an affirmation of his commitment to the currency and the region's monetary system.
Speaking at a regular monthly news conference, Draghi also said "significant progress" had been made in Spain to bring order to its finances, although more was needed.
Also supporting stocks, data showed that fewer Americans than expected had filed new claims for unemployment benefits last week, suggesting a mild improvement in the labour market. A separate report showed factory orders fell slightly less than expected.
The Dow Jones industrial average gained 96.13 points, or 0.71 percent, to 13,590.74. The S and P 500 rose 11.44 points, or 0.79 percent, to 1,462.43. The Nasdaq Composite added 13.01 points, or 0.42 percent, to 3,148.24.