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Subject: U.S. stocks extend gains into second day


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ThursdayApril 12, 2012,
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Date Posted: 10:00:40 04/12/12 Thu

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April 12, 2012, 11:29 a.m. EDT

U.S. stocks extend gains into second day
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By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks rose Thursday as investors embraced lower bond yields in Europe and the notion that China’s economy is headed for a soft landing.

Click to Play Fed's Yellen: Get used to low ratesThe Federal Reserve's No. 2 official made the case for sticking to the central bank's low interest-rate policies and said the Fed might need to take additional action to bolster the economy. (Photo: AP)
“We’re seeming in this mode where Europe matters again, and now we’ve gotten a reprieve from worries about Europe with yields coming in,” said Bill Stone, chief investment strategist at PNC Asset Management Group.

And, “China’s new loan volume came out higher than estimates, that may have fed into people’s thoughts on the quarter,” said Stone of a report Thursday from the People’s Bank of China. Read more.

“It bolsters the soft-landing story in China, we’re pretty sure we can get through a mild recession in Europe, but combined with a hard landing in China, the U.S. economy can’t escape both of those,” said Stone.

The Dow Jones Industrial Average /quotes/zigman/627449 DJIA +1.30% rose 146.1 points, or 1.2%, to 12,951.5, with 26 of its 30 components rising, including AT&T Inc. /quotes/zigman/398198/quotes/nls/t T +1.31% up 1.3% after J.P. Morgan Chase & Co. upgraded its view of the phone company.

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• ETF finder/conga/story/misc/markets.html 195153 Hewlett-Packard Co. /quotes/zigman/229301/quotes/nls/hpq HPQ +6.43% led blue-chip gains, up 6.6%, after a study found shipments of personal computers unexpectedly climbed in the first three months of 2012. Gartner Inc. concluded H-P heightened its stance at the top of the heap in terms of PC shipments, accounting for 17% of global shipments in the first quarter.

The S&P 500 Index /quotes/zigman/3870025 SPX +1.29% advanced 14.36 points, or 1.1%, to 1,383.07.

The Nasdaq Composite /quotes/zigman/123127 COMP +1.31% climbed 36.28 points, or 1.2%, to 3,052.74.

New York Fed President William Dudley on Thursday told an audience in Syracuse the economy is not yet strong enough to make a significant dent in the jobless rate.

His words come a day after Janet Yellen, the Fed’s vice chair, told another gathering in New York that she expects the country will fall “far short in achieving our maximum employment objective.” Read story on Yellen’s comments.

Stock futures had reined their gains after the Labor Department reported claims rose by 13,000 to 380,000, the highest since late January. Read story on jobless claims.

Search engine Google Inc.’s /quotes/zigman/93888/quotes/nls/goog GOOG +1.29% shares rose 1.1% ahead of the technology company’s results after Thursday’s close. Read preview of Google earnings.

Stocks on Wednesday broke a five-day losing run after Alcoa Inc. /quotes/zigman/246295/quotes/nls/aa AA +2.88% reported a surprising first-quarter profit.
/quotes/zigman/627449 Add to portfolio DJIA Dow Jones Industrial Average US : DJ-Index 12,971.44 +166.05 +1.30% Volume: 51.05mApril 12, 2012 12:58p
/quotes/zigman/398198/quotes/nls/t Add to portfolio T AT&T Inc. US : NYSE Euronx $ 30.85 +0.40 +1.31% Volume: 9.84mApril 12, 2012 12:58pP/E Ratio46.47Dividend Yield5.71%Market Cap$180.53 billionRev. per Employee$494,201
/quotes/zigman/229301/quotes/nls/hpq Add to portfolio HPQ Hewlett-Packard Co. US : NYSE Euronx $ 24.92 +1.51 +6.43% Volume: 26.51mApril 12, 2012 12:58pP/E Ratio8.38Dividend Yield1.93%Market Cap$46.29 billionRev. per Employee$358,939
/quotes/zigman/3870025 Add to portfolio SPX S&P 500 Index US : S&P Base CME 1,386.32 +17.61 +1.29% Volume: 230.46mApril 12, 2012 12:58p
/quotes/zigman/123127 Add to portfolio COMP NASDAQ Composite Index US : Nasdaq 3,055.99 +39.53 +1.31% Volume: 0.00April 12, 2012 12:58p
/quotes/zigman/93888/quotes/nls/goog Add to portfolio GOOG Google Inc. Cl A US : Nasdaq $ 644.15 +8.19 +1.29% Volume: 1.91mApril 12, 2012 12:58pP/E Ratio18.76Dividend YieldN/AMarket Cap$206.77 billionRev. per Employee$1.17M
/quotes/zigman/246295/quotes/nls/aa Add to portfolio AA Alcoa Inc. US : NYSE Euronx $ 10.19 +0.29 +2.88% Volume: 23.15mApril 12, 2012 12:58pP/E Ratio28.78Dividend Yield1.18%Market Cap$10.55 billionRev. per Employee$411,115
Kate Gibson is a reporter for MarketWatch, based in New York

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