Wednesday, Dec 03, 2008
U.S. stocks gained as a report showing a jump in online spending triggered a rally in retailers, overpowering an earlier tumble spurred by industry reports depicting a deepening recession.
Amazon.com Inc. climbed as much as 9.5 percent after research firm ComScore Inc. said Internet purchase at U.S. retailers climbed 15 percent to $846 million on Dec. 1, the second-biggest amount on record. CIT Group Inc., the commercial lender, rallied 20 percent and Genworth Financial Inc. climbed more than 13 percent to lead gains in financial shares.
The Standard & Poor’s 500 Index rose 5.3 points, or 0.6 percent, to 854.11 at 10:56 a.m. in New York after earlier tumbling 2.5 percent. The Dow Jones Industrial Average increased 26.77, or 0.3 percent, to 8,445.86. The Nasdaq Composite added 1.4 percent to 1,469.37. Almost two stocks rose for each that fell on the New York Stock Exchange.
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Stocks tumbled at the open after ADP Employer Services said payrolls fell by 250,000 last month, while the Institute for Supply Management’s service-industry index sank to the lowest since records began in 1997. ADP’s estimate of job losses topped the 205,000 forecast by economists in a Bloomberg survey, heightening concern that the government’s Dec. 5 jobs data will also be worse than forecast.