Issue link: http://www.epageflip.net/i/49823
8A Daily News – Saturday, December 10, 2011 A deal to forge stronger ties between most of Europe's economies sent stocks sharply higher Fri- day as hopes grew that the region is close to resolving its debt crisis. The Dow Jones industrial average rose 186 points. The Dow and S&P 500 both had their second straight week of gains. Financial stocks rose the most over the week as wor- ries eased about Europe. The yield on the 10-year Treasury note rose back above 2 percent as investors shed low-risk investments. All 17 nations that use the euro agreed to sign a treaty that allows a central European authority closer oversight of their budgets. Nine other EU nations are considering it. Britain is the lone holdout. The agreement came Stocks close higher as Europe nears budget pact Wall Street after marathon overnight talks among European leaders at a two-day sum- mit in Brussels. A deal on tighter fiscal control is con- sidered a crucial step before the European Cen- tral Bank will consider committing more money to lower borrowing costs of heavily indebted countries like Italy and Spain by buying their bonds. Ryan Detrick, senior technical strategist with Schaffer's Investment Research, cautioned that investors have been disap- pointed by Europe's previ- ous efforts to contain its debt crisis. The market will likely remain volatile in the coming weeks, Detrick said, because the Europe plan is ''only a minor step'' toward a solution. ''We've seen these agreements before, and they can just as easily dete- riorate,'' Detrick said. The Dow closed up 186.56 points, or 1.6 per- cent, at 12,184.26. It's up 1.4 percent for the week. Bank stocks led the market higher, reflecting traders' optimism about Europe's progress toward solving its crisis. Citigroup Inc. rose 3.7 percent, Mor- gan Stanley 3.1 percent and JPMorgan Chase & Co. 3 percent. Banks have been weighed down for months by fears about their expo- sure to Europe. The biggest European banks have been downgraded. If Europe's crisis spins out of control, U.S. banks that do business with them would also suffer because of the closely intertwined rela- tionships between global lenders and financial mar- kets. The Standard & Poor's 500 index closed up 20.84 points, or 1.7 percent, at 1,255.19. The Nasdaq composite index finished up 50.47, or 1.9 percent, at 2,646.85. The S&P is up 0.9 percent for the week, the Nasdaq 0.8 percent. The gains were broad. DuPont was the only stock among the 30 in the Dow average to fall. The chemi- cal and materials company slid 3.2 percent after say- ing it expects earnings this year will fall well short of Wall Street's forecasts because of weak demand for electronics and indus- trial supplies. It was the second con- secutive week of gains for all three indexes. Stocks were pummeled two weeks ago as borrowing costs soared for European nations such as Italy. They recovered last week after the world's major central banks announced a pro- gram to give commercial Alan Wylie Local Inspector Mobile: 530/638-1015 FREE & TERMITE INSPECTION or UP TO 15% OFF TERMITE TREATMENT SERVICE* banks easier, cheaper access to loans in U.S. dol- lars. Both the Dow and the S&P have risen 14 percent since hitting yearly lows on Oct. 3. Only the Dow, however, is higher for the year. The Dow's up 5.2 percent for 2011; the S&P and Nasdaq are each down 0.2 percent. Trading volume was very light. Just 3.6 billion shares were traded on the New York Stock Exchange, well below the recent daily average of 4.7 billion. The yield on the 10- year Treasury note rose to 2.07 percent from 1.97 percent late Thursday, sig- naling lower demand for ultra-safe investments. The rise followed news that a survey of U.S. con- sumer sentiment hit a six- month high this month, better than Wall Street expected. Stocks barely reacted. ''The U.S. is showing definite signs of improving Magic of Christmas Cone & Kimball Plaza Santa's Workshop Dec. 3rd PEST EVALUATION FREE & SAVE 10% OFF PEST CONTROL SERVICE* 10-2pm Dec. 17th & 10th Kids do present making at no cost to parents 10-2pm Arts & Crafts Festival Sponsored by Downtown Red Bluff Business Assoc. Mon-Fri: 9am - 7pm Sat: 9am - 5pm Sun: Closed En Español 26 Sale Lane, Red Bluff • (530) 529-2192 www.Claytonredbluff.com $48,505 3 bedroom, 2 bath Singlewide: Includes home, set-up, delivery, X12 foundation, gravel pad, A/C, skirting and steps Come Join Us Hoyt-Cole Chapel of the Flowers 816 Walnut St. Red Bluff, CA 96080 Let's celebrate the lives that have been lived this holiday season. Please bring us a photo of your loved one to be placed in a special ornament, provided by Monday, December 5, 2011 - Wednesday, December 14, 2011 Hoyt-Cole Chapel of the Flowers. Photo's are being collected from, Holiday Candy Sale Boxed Assortments Gift Trays Stocking Stuffers Milk, Dark, White & Sugar-free Chocolates Brittles Chocolate-Covered Nuts & Espresso Beans We will be honoring your loved ones and will have a remembrance ceremony. Light refreshments and snacks will be provided, Friday, December 16, 2011 at 6:00 P.M. Questions' please call 527-1174 Caramel Corn Salt Water Taffy To view our complete line of holiday candy selections visit us at www.pumpkinlandchocolate.com Phone orders welcome - we ship 12000 Hwy. 99E (5 miles South of Red Bluff) 530 527-3026 Holiday hours: 9:30-5:30 Sunday - Thursday 9:30-6:30 Friday & Saturday Closed Christmas & New Year's Day PUMPKINLAND Chocolate Company on the economic front, yet we almost ignore it, and every day we seem to focus on European issues,'' Detrick said. Many think the only path out of the debt crisis is a more active role by the European Central Bank, which can buy up govern- ment debt to keep nations' borrowing costs down. It currently buys bonds in the markets, but only reluc- tantly, and in small quanti- ties. Germany and France, the two biggest economies in the euro zone, had hoped to persuade all 27 members of the European Union to change an EU treaty and impose tight fis- cal rules on its members. Britain refused to join in because it wanted to be exempt from proposed financial rules. Among other compa- nies making big moves: — Pall Corp. surged 7.9 percent after the filtration equipment maker reported fiscal first-quarter earnings that far exceeded analysts' expectations. — The Cooper Cos. Inc. leaped 16.6 percent after the eye care company topped expectations with its fiscal fourth-quarter performance. — GE rose 3.2 percent after the manufacturing giant said it will increase its quarterly dividend by 2 cents to 17 cent per share, GE's fourth increase in two years.