October 25th, 2010
10:54 PM ET

Stocks rally to 6-month highs

A look at the day's business news headlines:

Strong gains for stocks

Stocks climbed to 6-month highs Monday after a report on housing sales came in much better than expected.

 

The Dow Jones industrial average  added 31 points, or 0.3 percent, to close at 11,164, its highest level since April. The S&P 500  increased 3 points, or 0.2 percent, to 1,185 and the Nasdaq (COMP) was up 11 points, or 0.5 percent, to 2,491.

All three indexes had been up nearly 1 percent earlier in the morning, after the release of a strong report on existing home sales. Gains receded slightly as the day continued, but most sectors were still strong - 23 of the 30 blue-chip Dow components were higher at the closing bell.

It marked the second time in the past week that the Dow has eclipsed its highest closing level this year, only to quickly pull back. It rose as high as 11,247.60 earlier Monday; the year's highest close was 11,205.03 on April 26. The intraday peak for the year was 11,258, also on April 26.

Existing home sales on the rise

Existing home sales climbed for the second month in a row in September, fueling some hope that a housing recovery is underway.

Sales of previously owned homes rose 10% to a seasonally adjusted annual rate of 4.53 million units last month, the National Association of Realtors reported Monday. That was up from a 4.12 million rate in August.

The report came in much stronger than expectations. Economists had forecast sales to edge up to an annual rate of 4.25 million units, according to consensus estimates from Briefing. com.

Ford to bring jobs to Michigan

Ford Motor company said it will create up to 1,200 jobs in the distressed state of Michigan as it ramps up its engineering and manufacturing operations to produce more fuel-efficient cars.

Lured by state tax incentives, the automotive company announced Monday it plans to invest $850 million in new fuel-saving technologies between 2011 and 2013.

Ford's  stock closed 1.4% higher.

The funds would generate hundreds of new full-time positions in manufacturing and engineering operations in Michigan by 2013, according to a statement released by the company.

– CNNMoney.com staff reporters Julianne Pepitone,  Annalyn Censky and Jessica Dickler contributed to this report.

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Filed under: Economy
soundoff (12 Responses)
  1. Big Game James

    Where are the Obama haters? I smell a comeback!!

    October 26, 2010 at 1:38 am | Report abuse | Reply
    • Venkman

      Ray. If someone asks if you are a god, you say, "yes!"

      October 26, 2010 at 8:24 am | Report abuse |
  2. tomcat

    the original tomcat is gone. to friends sorry. to posers. you dr bad parrot and other cyber terrorist have fun while you can haha.

    October 26, 2010 at 2:01 am | Report abuse | Reply
    • Venkman

      Wow! Talk about telekinetic activity, look at this mess!

      October 26, 2010 at 8:25 am | Report abuse |
  3. Rock God

    Can you imagine the depression we would be in if McCain had been elected?

    October 26, 2010 at 2:16 am | Report abuse | Reply
    • Venkman

      I blame myself.

      October 26, 2010 at 8:25 am | Report abuse |
  4. Floria sigmundi

    This is such great news

    October 26, 2010 at 3:58 am | Report abuse | Reply
    • Venkman

      Ray has gone bye-bye, Egon... what've you got left?

      October 26, 2010 at 8:26 am | Report abuse |
  5. Rocketship

    Prerpare for the next boom time. This whipsaw economy is about to lift off.

    October 26, 2010 at 6:10 am | Report abuse | Reply
    • Venkman

      You know, you don't act like a scientist.

      October 26, 2010 at 8:26 am | Report abuse |
  6. Venkman

    Everything was fine with our system until the power grid was shut off by d!ckless here.

    October 26, 2010 at 7:10 am | Report abuse | Reply
  7. WhiteKong78

    All this says is that the stockholders and corporate heads of companies are making money. Where are the jobs that are supposed to follow? As far as I know the US is still bleeding jobs. Make outsourcing illegal Mr.Obama.

    October 26, 2010 at 11:55 am | Report abuse | Reply

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