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8B Daily News – Tuesday, August 30, 2011 NEW YORK (AP) — So much for Irene. Stocks rose broadly Monday, led by insurance compa- nies, after it became clear that the tropical storm caused far less damage than many had feared. An increase in U.S. con- sumer spending also helped, as did as did a rare piece of good news from Greece: a merger of two major banks. The Dow Jones industrial average jumped 254 points. Trading volume, or the number of shares bought and Insurers drive stocks higher; Dow gains 254 Wall Street sold, was the lowest since July 26 as many traders struggled to get to work in Lower Manhattan or were on vacation. Insurance stocks rose sharply as analysts lowered their estimates of how much damage the storm would cause. All- state Corp. rose 8.5 percent, Hartford Financial Services Group Inc. rose 13 percent, and Travelers Cos. Inc. rose 5.1 Education Calendar September, 2011 Cardiac Support Group 7:00pm-9:00pm 9/12 2nd Monday Columba Room 527-5077 Childbirth Class (9/1 - 10/6) Thursdays 6:30pm-8:30pm Columba Room 529-8026 Community BLS/CPR 6:00pm-10:00pm 9/13 • 2nd Tuesday Columba Room, 529-8026 Grief Support Group 3:00pm-5:00pm Every Thursday Coyne Center, 528-4207 Waterbirth Class 5:00pm-9:00pm 9/14 • Wednesday Columba Room, 529-8026 St. Elizabeth Community Hospital A member of CHW www.redbluff.mercy.org/sports redbluff.mercy.org Exchange (530) 528-8000 Gold 413 Walnut Street Red Bluff To ALL of the All-Star Little League Players, Coaches & Parents for a job well done OPEN: Mon.-Fri. 10am - 5:30pm • Sat. 11am - 4pm percent. Insurance and banking stocks in the Standard & Poor's 500 rose 4.2 percent, the most of the 10 company groups that make up the index. Kinetic Analysis Corp., a consulting firm, sharply lowered its estimate of storm dam- age from $20 billion late Thursday to $7 billion late Sunday as the storm weakened. Of that amount, insurers would probably have to cover up to $3 billion, Kinetic said. That's less than the $6 billion the industry paid after Hurricane Isabel struck the region in 2003. ''The U.S. came more or less unscathed through the hur- ricane,'' said Kim Caughey Forrest, equity research analyst at Fort Pitt Capital Group. ''The cleanup isn't going to cost as much as anticipated.'' Utilities companies also rose after it became clear their storm-related expenses would be lower than earlier esti- mates. Duke Energy Corp., which serves customers in the Carolinas, rose 1.1 percent. New York's biggest utility com- pany, Consolidated Edison Inc., rose 1.3 percent. The New York Stock Exchange and other major U.S. exchanges opened as usual Monday after making extensive preparations over the weekend. At the NYSE, executives brought in dozens of cots so employees could sleep there to be ready for the opening bell. The Dow Jones industrial average rose 254.71 points, or 2.3 percent, to close at 11,539.25. It is now down just 0.3 percent for the year. It had been down as much as 7.4 percent for the year on Aug. 10. The Standard & Poor's 500 index rose 33.28 points, or 2.8 percent, to 1,210.08. The widely used market benchmark is now up 8.1 percent since on Aug. 8, when it hit low for the year because of a downgrade of the U.S. government's cred- it rating. The technology-focused Nasdaq composite index rose 82.26, or 3.3 percent, to 2,562.11. The Russell 2000 index, a benchmark for small compa- nies, rose 32.86 points, or 4.7 percent, to 724.65. The stair- step pattern of gains, from 2.3 percent in the Dow to 4.7 per- cent in the Russell, suggested investors were more willing to take on risk. Small company stocks are more likely to fall in economic downturns, but they also offer the potential of larg- er gains if the economy does well. The Russell is still down 7.5 percent this year, nearly twice as much as the S&P 500. Bank of America Corp. rose 8.1 percent, the most of the 30 stocks that make up the Dow average, after the bank said it would sell half of its stake in China Construction Bank Corp. The bank has been selling assets to raise cash to com- ply with new banking regulations. Last week, billionaire Warren Buffett's company, Berk- shire Hathaway Inc., said it would invest $5 billion in BofA, giving the troubled company a badly needed boost. The nation's largest bank has lost 34 percent of its value over the past year as investors worry that its liabilities from soured mortgages will get worse and that it will have to sell large amounts of stock to raise capital. An increase in consumer spending also helped push stocks higher. The government reported that spending rose 0.8 percent in July. It was a sharp turnaround from June, when Americans cut spending 0.1 percent, the first decline in 20 months. Volume was low as transit disruptions made it difficult for Wall Street employees to get to work. Flooding and downed trees obstructed tracks throughout the commuter rail systems that bring workers in from the Connecticut, New York and New Jersey suburbs. About 3.6 billion shares traded hands on the New York Stock Exchange, the lowest since July 26. The average this year is 4.4 billion shares. Many traders are on vacation the last week before the Labor Day holiday. European stocks jumped after two Greek banks said they would combine to better weather that country's debt crisis. Greece's Athex Composite index jumped 14.4 percent after the country's second- and third-largest lenders agreed to combine, creating the country's largest bank. 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