July 26th, 2010
06:13 PM ET

Stocks rally after better-than-expected housing report

A look at highlights from the day's business news:

Stocks rally on housing, FedEx

Stocks rallied Monday after FedEx's improved forecast and a better-than-expected housing market report tempered worries about the economic outlook.

The Dow Jones industrial average added 100 points, or 1 percent. The S&P 500 index rose 12 points, or 1.1 percent. The Nasdaq composite gained 27 points, or 1.2 percent.

Both the Dow and Nasdaq are now positive for the year, while the S&P 500 stands roughly where it stood at the end of 2009. All three major gauges had rallied soundly through late April, sold off through the end of June and have recovered in July.

Stocks gained in the morning and built on those gains as the session wore on, with investors scooping up a variety of shares. Twenty-nine of 30 Dow shares gained, led by oil stocks Exxon Mobil and Chevron.

Treasurys flat ahead of auctions

Treasury prices stayed flat Monday as the government prepared to auction $104 billion in bonds this week.

The benchmark 10-year note ticked up 1/32 to 104-9/32 and its yield was 3 percent, the same as the yield late Friday. Bond prices and yields move in opposite directions.

The 30-year bond was flat at 106-5/32 and its yield was 4.02 percent. The two-year note held at 100-2/32 and yielded 0.60 percent.

Read full CNNMoney.com story

- CNNMoney.com reporters Alexandra Twin and Julianne Pepitone contributed to this report.


Filed under: Economy
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