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10A Daily News – Friday, October 28, 2011 European debt deal lifts Dow by almost 340 points NEW YORK (AP) — An agreement to contain the European debt crisis electrified the stock market Thursday, driving the Dow Jones Industrial average up nearly 340 points and putting the Standard & Poor's 500 index on track for its best month since 1974. Investors were relieved after European leaders crafted a deal to slash Greece's debt load and prevent the crisis there from engulfing larger countries like Italy. The package is aimed at pre- venting another financial disaster like the one that happened in September 2008 after the collapse of Lehman Brothers. But some analysts cau- tioned that Europe's prob- lems remained unsolved. ''The market keeps on thinking that it's put Europe's problems to bed, but it's like putting a three- year old to bed: You might put it there but it won't stay there,'' said David Kelly, chief market strategist at J.P. Morgan Funds. Kelly said Europe's debt problems will remain an issue until the economies of struggling nations like Greece and Portugal grow again. Commodities and Trea- sury yields soared as investors took on more risk. The euro rose sharply against the dollar. Stronger U.S. economic growth and corporate earn- ings also contributed to the surge. The government reported that the American Local Businesses: You can sponsor a whole classroom of kids to design an ad for YOUR business! YOU choose the winning entry. Your kid-designed ad will be featured in Through a Child's Eyes • Published as a full section of The Daily News in November • Digital edition stays online for a full year Tuesday, November 1 D NEWSAILY Sponsor Deadline: RED BLUFF TEHAMACOUNTY For details and sponsorship Reservations call your Daily News advertising Representative today! 527-2151 economy grew at a 2.5 per- cent annual rate from July through September on stronger consumer spend- ing and business invest- ment. That was nearly dou- ble the 1.3 percent growth in the previous quarter. Banks agreed to take 50 percent losses on the Greek bonds they hold. Europe will also strength- en a financial rescue fund to protect the region's banks and other struggling European countries such as Italy and Portugal. ''This seems to set aside the worries that there would be a massive conta- gion over there that would have brought everything down with it,'' said Mark Lamkin, head of Lamkin Wealth Management. The Dow Jones indus- trial average soared 339.51 points, or 2.9 percent, to 12,208.55. That was its largest jump since Aug. 11, when it rose 423. All 30 stocks in the Dow rose, led by Bank of America Corp. with a 9.6 percent gain. It was the first time the Dow closed above 12,000 since Aug. 1. Even with Thursday's gains, the Dow remains 4.7 percent below the high for the year it reached April 29. The Dow has fallen every month since then due to a combination of a slow- down in the U.S. economy, a worldwide parts shortage after the earthquake and tsunami in Japan, and con- cerns about the European debt crisis. The Dow is now at approximately the same level it traded at on July 28. Stocks fell for much of August in the wake of a last-minute deal to prevent the U.S. government from defaulting on its debt. But anticipations of a solution to Europe's debt problems and signs that the U.S. economy is not in another recession have lift- ed stocks higher through- out October. The Dow is up 11.9 per- cent for the month so far. With only two full days of trading left in the month, the Dow could have its biggest monthly gain since January 1987. The S&P 500 rose 42.59, or 3.7 percent, to 1,284.59. Those gains turned the S&P positive for the year for the first time since Aug. 3, just before Win WinWin Win to complete the study! You could $100* Just for sharing your local shopping and media preferences! Take the Pulse Research survey online only at: www.pulseresearch.com/redbluffdailynews *$100 gift certificates will be awarded to four individuals selected at random from among those completing the survey. Those selected may choose any store or business in Tehama County at which to redeem their gift certificate. Individual survey responses will not be shared with any third party. D NEWSAILY RED BLUFF TEHAMACOUNTY Hurry! Less than 30 surveys needed $1.39 late Wednesday and had been as low as $1.32 on Oct. 3. European stock indexes also soared. France's CAC-40 rose 6.3 percent and Germany's DAX jumped 6.1 percent. Investors sold U.S. Treasury notes and bonds, an indication they were moving away from safer investments. The yield on the 10-year Treasury note, which moves in the oppo- site direction of its price, rose to 2.39 percent from 2.21 percent late Wednes- day. European leaders still the U.S. government's debt was downgraded. The index is up 13.5 percent for the month, its best perfor- mance since a 16.3 percent gain in October 1974. The Nasdaq composite leaped up 87.96, or 3.3 percent, to 2,738.63. Small-company stocks rose more than the broader market. That's a sign investors were more com- fortable holding assets per- ceived as being risky but also more likely to appreci- ate in a strong economy. The Russell 2000 index jumped 5.3 percent. Raw materials produc- ers, banks and stocks in other industries that depend on a strong econo- my for profit growth led the way. Copper jumped 5.8 percent to $3.69 a pound and crude oil jumped 4.2 percent to $93.96 a barrel. The euro rose sharply, to $1.42, as confidence in Europe's financial system grew. The euro was worth have to finalize the details of their latest plan. French President Nicolas Sarkozy spoke with Chinese Presi- dent Hu Jintao amid hopes that countries with lots of cash like China can con- tribute to the European res- cue. Past attempts to contain Europe's two-year debt crisis have proved insuffi- cient. Greece has been sur- viving on rescue loans since May 2010. In July, creditors agreed to take some losses on their Greek bonds, but that wasn't enough to fix the problem. Worries about Europe's debt crisis and a weak U.S. economy dragged the S&P 500 down 19.4 percent between April 29 and Oct. 3. That put it on the cusp of what's called a bear mar- ket, which is a 20 percent decline. Nine stocks rose for every one that fell on the New York Stock Exchange. Volume was heavy at 6.5 billion shares. RANDAL S. ELLOWAY DDS IMPLANTS DENTISTRY 2426 SO. 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