Stocks rise on hopes for European banks

Oct 5 2011 - 3:11pm

NEW YORK -- Stocks rose sharply higher for a second straight day on signs that European officials are moving to support the region's struggling banks.

Analysts said the gains were triggered by reports that European officials are exploring ways to limit the damage should the Greek government default on its debt.

Signs of growth in the U.S. economy also pushed stocks higher. Growth in the service sector was in line with Wall Street's expectations. Private companies added 91,000 jobs last month.

The Dow rose 131 points, or 1.2 percent, to 10,940. The S&P 500 gained 20, or 1.8 percent, to 1,144. The Nasdaq composite rose 56, or 2.3 percent, to 2,461.

Three stocks rose for every one that fell on the New York Stock Exchange. Volume was above average at 5.1 billion shares.

 

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