U.S. stock markets came to life Tuesday as hope for Congress to pass an economic stimulus package raised enthusiasm among investors, and Bay Area bellwethers such as Intel, Apple and HP surged in a broad rally across Wall Street.
A day after stocks retreated when lawmakers failed to pass a nearly $2 trillion economic rescue plan, the Dow Jones Industrial Average surged by more than 1,400 points, or 7.6%, to reach 20,012.80, and the broad-based S&P 500 climbed by more than 7%, to 2,398.40. The Nasdaq Composite Index, which includes many Silicon Valley tech stocks, rose than 6%, to 7,283.84.
The market reacted positively to congressional leaders signaling that a deal on the proposed economic stimulus plans, which would include the sending checks of $2,400 to married couples and $500 for each child almost as soon as it is passed. House Speaker Nancy Pelosi told CNBC Tuesday morning that there was “real optimism” that lawmakers would soon sign off on a deal.
Among local companies, Intel shares climbed by 5%, to $52.10. Goldman Sachs analyst Toshiya Hari raised his rating on Intel’s stock to neutral from sell on the grounds that the semiconductor giant could end up seeing business increase as a result of the growing trend of people working remotely.
Apple shares rose 6.3%, to $238.59, Facebook climbed by 4.6%, to $154.73 a share, HP surged by 9%, to $14.93 a share, Cisco Systems shares rose more than 6%, to $36.81 and AMD rose by 9%, to $36.81.
Tesla shares climbed more than 14%, to $497.94. The electric carmaker got a stock upgrade from UBS analyst Patrick Hummel, who raised his rating on Tesla to neutral from sell due to an anticipated backlog of orders from China. However, Citigroup analyst Itay Michaeli cut his price target on Tesla to $246 from $312 a share, and kept his sell rating on the stock due to a belief that the company could see significant pressure resulting from the suspension of manufacturing operations at its plant in Fremont.
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