Now the WSJ is thanking us for the best SEP open in years.
we must be different?
"lifted by signs of economic strength in Australia and China"
copper/oil surge
"Hello September.
Stocks surged as strong global manufacturing data helped kick off the historically volatile month with a bang, following a bruising August.
Investors dumped Treasurys and snapped up commodities and other riskier assets.
The Dow Jones Industrial Average rose 254.75 points, or 2.5%, to 10269.47, recouping some of August's 4.3% stumble. The Standard & Poor's 500-stock index jumped 2.6% to 1080.29, while the Nasdaq Composite rose 3% to 2176.84.
The day's gains were the biggest in nearly two months, and marked the strongest start to September since 1998.
Industrial stocks led the gains, with Caterpillar surging 4.6%, lifted by signs of economic strength in Australia and China, as well as a surprise jump in U.S. manufacturing activity.
"Investor sentiment was so negative that any flicker of light was going to move sentiment with quite a roar, and that's what we got," said Anthony Chan, chief economist at J.P. Morgan Private Wealth Management. "With the purchasing-managers index coming out of two largest economies in the world—China and the U.S.—coming in larger than expected, you can't ignore that this is good news."
The Dow Jones Transportation Average, seen as a leading indicator, gained 3.9%. Financials also joined the rally. Bank of America surged 6.1% to lead Dow components, just one day after skidding to a 52-week low.
Surging commodity prices helped fuel energy stocks. Crude-oil futures jumped to nearly $74 a barrel. Copper surged 3.2% to its highest settlement since April, while the commodity-driven Australian and Canadian dollars jumped against the dollar.
"If there are markets that are growing, U.S. companies can prosper, regardless of the domestic labor markets in the next few months," said Jerry Webman, chief economist and senior investment officer with OppenheimerFunds.
Treasurys sank as investors flocked to risk, pushing the yield on the benchmark 10-year note temporarily over 2.6%.
The stock rally was global, starting in Australia and flowing through Europe, where stocks rose 2.1% and 2.6%, respectively. The advances came in spite of a weak U.S. jobs report, paving the way for Friday's closely watched monthly nonfarm-payrolls data.
Despite the breadth of Wednesday's bump, which saw 96% of share volume advancing, many remained unconvinced amid limp trading volumes. Others attributed the gains to heavy buying at the start of the month, as money managers reweight allocations and deploy new funds.
James Dailey, senior portfolio manager of the Team Asset Strategy fund, used the stock surge to add hedges and increase his short-selling positions. "The jury is still out on whether this is anything more than a short-term pop," he said.
Jim Paulsen, chief investment strategist at Wells Capital Management, said Wednesday's swings were typical during an uncertain period where forecasters were disagreeing sharply on the economy.
"This type of debate really sets us up for some potentially violent moves in bond yields and stocks, and we got a flavor of that today," he said. "We've gone way up and way down, way up and way down, and when you look at it, it hasn't gone anywhere."
Read more: Stocks Gain as Economic Fears Ease - Investing -Stocks - SmartMoney.com http://www.smartmoney.com/investing/stocks/market-update-wednesday-sep-1-2010-25023/#ixzz0yK9ZhRqZ
this is a shareable copy.
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