Although stock futures prior to opening bell for the last trading session set
the stage for the lower open for U.S. stocks, a huge rally during the trading
session pushed the primary indices far into the green during the session. All
three primary indices in the U.S. finished on positive ground. The Dow Jones
Industrial Average closed higher by 4.24 percent at 12,045.68. The Nasdaq
finished higher by 4.17 percent at 2,620.34 and the S&P 500 finished the day
green by 4.33 percent at 1,246.96. It was the largest gain for the Dow since
2009. The significant rally stemmed, in part, from the central banks coming
together to ease global market strains in hopes of boosting the global economy.
A handful of central banks announced last session that they would take steps to
improve economic activity by making it cheaper to borrow U.S. dollars. The
Federal Reserve, as well as central banks of Canada, England, Switzerland, Japan
and the eurozone have announced that they will work in unison to lower prices on
dollar liquidity swaps beginning on December 5th. The swap arrangements, will
continue up to February 1st of 2013. Stocks in Europe and the U.S.A. surged
today on the news. In addition to this positively skewed report, economic news
in the U.S. was better than expected. The ADP report showed that private sector
employment grew by about 206,000 in November. This was well above the expected
125,000 number that most economists were anticipating. The Midwest manufacturing
report, the Chicago Purchasing Managers Index, posted data that expressed
positive expansion. Finally, the Feds Beige Book posted today and portrayed slow
to moderate economic growth for the U.S. based on outlooks from primary banks
across the country. The dollar gained on the euro last session and oil price per
barrel moved up to 100.44 per barrel. Frank Matto
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