by Alyssa Oursler | October 15, 2012 4:37 pm
Promising economic news out of the U.S. and China Monday morning gave the markets a much-needed jump after last week’s dismal performance.
The U.S. Commerce Department reported that retail sales grew 1.1% in September. Excluding cars, fuel and construction supplies, sales increased 0.9% — far better than the 0.3% experts were expecting.
In China, consumer prices fell from 2% to 1.9% over the last month, while producer prices tumbled 3.6% from last year. The news tells economists that Beijing’s efforts to stimulate the slowing economy may be having an effect.
The S&P 500 saw the biggest percentage gains as a result, with a 0.81% climb to 1,440.12. The Dow Jones Industrials was close behind, moving up 0.72% to 13,424.3, while the Nasdaq was in the black by 0.66% to 3,064.18.
The good news didn’t end there, though. Clearwire (NASDAQ:CLWR) saw shares skyrocket even more today after Softbank (PINK:SFTBY) finally announced plans to acquire a 70% stake in Sprint Nextel (NYSE:S). Clearwire’s value has doubled over the last five days on anticipation of such a deal. Today alone, CLWR climbed 16%.
Citigroup (NYSE:C) continued the earnings parade, announcing that it made $1.06 per share — up sharply from last year’s EPS of 84 cents and better than the 97 cents analysts were expecting. The stock’s 6% gain was much better than JPMorgan Chase (NYSE:JPM) and Morgan Stanley (NYSE:MS) fared after they failed to meet Wall Street’s high expectations last week.
The news wasn’t as great for Gannett (NYSE:GCI) and Charles Schwab (NYSE:SCHW), which also both reported before the bell. The newspaper company beat earnings estimates on record quarterly broadcast revenue, but shares slid slightly. Schwab managed to increase earnings by 12%, but missed revenue estimates. The stock ended barely in the black.
Biotech stocks Cyclacel Pharmaceuticals (NASDAQ:CYCC) surged by more than 27% Monday on the heels of good news regarding a phase 2 study of its drug Sapacitabine — a treatment for patients with myelodysplastic syndromes. Similar news also sent shares of Sarepta Therapeutics (SRPT) and Aegerion Pharmaceuticals (NASDAQ:AEGR) upwards.
After last week’s coal stock boom, James River Coal (NASDAQ:JRCC) and Alpha Natural Resources (NYSE:ANR) also continued their climb, gaining 25% and 7%, respectively. Tech company Workday (NYSE:WDAY), which pulled off a highly successful IPO last week, kept rising as well, with gains of 7%.
Finally, big names Sirius XM Radio (NASDAQ:SIRI) and Abbott Laboratories (NYSE:ABT) each reached 52-week highs.
Alyssa Oursler is an Editorial Assistant at InvestorPlace.com. As of this writing, she did not hold a position in any of the aforementioned securities.
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