U.S. Stocks Rise, Led by Shares of Energy, Real-Estate Firms

Nov. 13 (Bloomberg) — U.S. stocks staged a late-day rally to climb the most in two weeks as investors snapped up the cheapest energy shares on record and real-estate companies gained after CB Richard Ellis Inc. raised cash in a share sale.

Exxon Mobil Corp. and Chevron Corp. led gains in all 40 energy producers in the Standard & Poor’s 500 Index and helped the Dow Jones Industrial Average rebound from a 317-point drop. CB Richard Ellis, the world’s largest provider of commercial real-estate services, surged 43 percent for its steepest advance since going public in 2004.

Declines in midday trading today pushed the S&P 500 to 35 percent below its average for the past 200 days, only the second time that’s happened since the Great Depression. The last time was a day before the index rose 12 percent on Oct. 13, the biggest rally since 1939.

“Bottom line, stocks are incredibly cheap,” said Wayne Wilbanks, chief investment officer of Wilbanks Smith & Thomas Asset Management in Norfolk, Virginia, which oversees $1.1 billion. “Volatility accelerates when markets reach bottoms. We could be at 10,000 in a day and a half the way the market is right now.”

The S&P 500 added 6.9 percent to 911.29, reversing a slide of 3.9 percent. The Dow increased 552.59 points, or 6.7 percent, to 8,835.25. The Nasdaq Composite Index jumped 6.5 percent to 1,596.7. More than 14 stocks rose for each that fell on the New York Stock Exchange, where almost 2 billion shares changed hands in the busiest trading session since Oct. 16.

The S&P 500 swung between gains and losses at least 38 times, including a drop that sent the benchmark index to its lowest level since the Iraq War broke out 5 ½ years ago.

Europe’s benchmark index fell 0.6 percent, led by banks and commodity producers, as Germany sank into recession and the OECD forecast a global economic slump. Asia’s regional benchmark slid 4.8 percent after Commonwealth Bank of Australia said bad debts may double and China’s industrial output missed estimates.

The MSCI Emerging Markets Index lost 1.3 percent, extending its three-day slide to almost 10 percent.

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: