Startling analysts, U.S. stocks soared today, the first day of trading for 2012, with the Dow jumping 180 points and the S&P 500 up 1.5 percent. The U.S. rally was joined by big gains in European and Asian stocks, leading to a range of theories about the New Year surge given Europe's persistent debt woes. Here's what analysts are saying:
This is about manufacturing growth Julie Creswell at The New York Times reports that "some analysts" attributed the rise to a manufacturing report by the Institute for Supply Management. The report said "its manufacturing index rose to 53.9 points in December from 52.7 in November. Readings above 50 indicate expansion." Speaking with Bloomberg, Kevin Shacknofsky of Alpine Mutual Funds agreed. “The U.S. market has been cheering because of the fact the U.S. economy has been performing better,” he said. “In line with everything else today, the manufacturing data is better than expected.”
It's about beating (low) expectations Chip Cobb, senior vice president at Bryn Mawr Trust Asset Management, senior vice president at Bryn Mawr Trust Asset Management, tells The Wall Street Journal, "The bar on all these numbers has been set so low, but we're continuing on a positive trend." He adds "Whether it's the manufacturing report, or the housing and employment data over the last several weeks, they're all heading in the right direction. They're just not heading at the pace that we want them to go. But they're beating low expectations."
This article is from the archive of our partner The Wire.