Stocks ended Thursday with strong gains, powered by upbeat U.S. economic news, a European rate cut and reports that Greece has dropped its move to hold a referendum on the European bailout package.
The Dow Jones industrial average closed at 12,044.47, up 208.43 points, or 1.8 per cent. The broader S&P 500 closed at 1,261.15, up 23.25 points, or 1.9 per cent. In Canada, the S&P/TSX composite index closed at 12,468.35, up 226.59 points, or 1.9 per cent.
The gains were widespread, with all 30 stocks within the Dow moving higher. A dip in U.S. initial jobless claims, which fell below 400,000 to a five-week low and were slightly better than economists' expectations, helped move things along. On Friday, the Labour Department will issue its non-farm payrolls report. U.S. non-manufacturing activity slid slightly in October, but remained in expansion territory.
Meanwhile, the new president of the European Central Bank, Mario Draghi, presided over his first monetary policy statement, cutting the euro zone's key rate by a quarter of a percentage point. In doing so, he appeared to signal a new policy within the central bank, which has recently been more concerned about inflation than stimulating economic growth.
In Greece, concerns this week that the country would put the country's bailout agreement to a referendum appeared to subside. European leaders put pressure on the country at the G20 meeting, saying that Greece has to make a clear decision about whether or not it is staying within the euro zone – and accepting bailout money from its European peers.
The Greek Prime Minister quickly backtracked on the referendum idea, though, saying that he would instead build consensus for the bailout plan with the country's opposition politicians.
Among big movers within the U.S. market, Hewlett-Packard Co. rose 3.6 per cent, Kraft Foods Inc. rose 3.3 per cent and Bank of America Corp. rose 2.8 per cent. Estée Lauder Cos. Inc. surged 17.9 per cent after the beauty products maker reported strong quarterly earnings and raised its full-year guidance.
In Canada, energy stocks were among the top performers, following gains in the price of crude oil and strong quarterly results from the likes of Suncor Energy Inc. and Canadian Natural Resources Ltd. Suncor rose 4.4 per cent and Canadian Natural Resources rose 9.3 per cent. Oil rose to $94.07 (U.S.) a barrel, up $1.56.
Gold producers were also strong after the price of gold rose to $1,765.10 an ounce, up $35.50. Barrick Gold Corp. rose 2.6 per cent.
David Berman