Recessions and recoveries
Chris Caton discusses the global economic climate with the DOW and S&P finishing recent session on a positive note.
Wall Street stocks lifted to new highs for the year overnight after a stronger-than-expected report on US retail sales reinforced optimism on the economic recovery.
Federal Reserve chairman Ben Bernanke's comment that the recession "is very likely over'' also appeared to help the mood as investors reflected on the one-year anniversary of the collapse of Lehman Brothers that set off a global panic.
What you need to know
The SPI was up 23 points at 4570
The Australian dollar was buying 86.43 US cents
The Reuters Jefferies CRB index was up 2.18%
The Dow Jones Industrial Average advanced 56 points (0.58 per cent) to 9682.80 at the closing bell as the stock market posted its sixth gain over the past seven sessions.
The tech-dominated Nasdaq composite added 10.86 points (0.52 per cent) to 2102.64 and the Standard & Poor's 500 index increased 3.28 points (0.31 per cent) to a preliminary close of 1052.62.
Action came after news that US retail sales jumped 2.7 per cent in August, led by the government's popular "Cash for Clunkers'' program that boosted auto sales, but also from spending on a wide range of other goods.
"The government can jump-start the economy but the private sector has to take over if the recovery is to be long-lasting,'' said Joel Naroff at Naroff Economic Advisers.
"What we needed was the consumer to lead the way and this report provides the first bit of evidence that may indeed be happening.''
AFP
