Stocks Rise, a Signal Credit Crunch Is Failing To Derail Economy
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American stocks climbed for a fifth day on growing speculation the summer breakdown in credit markets won’t derail the economy or pending company mergers.
Nucor Corp., the second-biggest American steelmaker, led materials producers to the best gain in a year after BHP Billiton Ltd., the world’s largest miner, said demand for commodities remains strong. MGM Mirage, the second-biggest casino company, rose the most in three months after Dubai agreed to buy a stake. Stocks extended a rebound from their worst decline in four years after the Federal Reserve on August 17 cut the rate it charges banks to borrow in a bid to stem rising credit costs. The Standard & Poor’s 500 Index increased 16.95, or 1.2%, to 1,464.07. The Dow Jones Industrial Average added 145.27, or 1.1%, to 13,236.13. The Nasdaq Composite Index advanced 31.50, or 1.3%, to 2,552.80.
