Issue link: https://www.epageflip.net/i/44078
8B Daily News – Thursday, October 6, 2011 MON.-FRI. 9:00-5:30 • SAT. 9:00 -5:00 • CLOSED SUNDAYS FURNITURE DEPOT MATTRESS NORTH VALLEY NEW YORK (AP) — Stocks rose sharply for a second straight day Wednesday on signs that the U.S. economy grew in Sep- tember and that European officials are moving to sup- port the region's struggling banks. The Dow Jones industri- al average rose 131 points. Most of the gain, 80 points, came in the last hour of MON.-THURS. 9:00-6:00 • FRI. 9:00-7:00 • SAT. 9:00-5:00 • SUN. 11:00-5:00 235 So. Main St., Red Bluff 527-1657 632 Main St., Red Bluff 527-5837 trading. Analysts attributed the rise to increasing optimism about Europe's efforts to contain its debt crisis and a pair of reports in the U.S. showing a pickup in hiring and growth in service com- panies last month. The Financial Times reported late Tuesday that European officials are exploring a joint effort to support the region's banks. That triggered sharp rises in European markets, especial- ly bank stocks. Investors are worried that those banks could suf- fer deep losses if Greece starts missing debt pay- ments, which is also known as a default. That could cause the value of Greek bonds held by those banks to drop sharply. If those banks weaken severely, they may cut back on lending. That could disrupt financial markets and even send Europe into a recession. The Financial Times report, which came out after European markets closed Tuesday, triggered a late rally in U.S. stocks that pre- vented the S&P 500 from entering a bear market — a 20 percent decline from its recent peak, reached in Mattress Sets & Adjustable Bed April. Financing & Delivery Available • FREE pillows • FREE delivery • FREE disposal With purchase of Tempurpedic mattress sets only. Stocks rise on hopes for European banks Wall Street Analysts cautioned that the two-day gain in stocks may not last, given the strains that are still affecting the U.S. economy. ''The market is trading on sentiment right now, not fundamentals,'' said Rob Stein, head of Astor Asset Management. ''People are hoping that the bounce yes- terday means that we've hit a bottom, but the problems that were in the economy Monday haven't changed since then.'' Other traders pointed to meetings by the European Central Bank and the Bank of England Thursday in which officials are expected to discuss additional mea- sures to increase investors' confidence in the European banking system. ''There's a reluctance to (bet that stocks are going to fall) when there's a chance that you'll see an announce- ment out of Europe to help the banks by the weekend,'' Win WinWin Win You could $100* Just for sharing your local shopping and media preferences! Take the Pulse Research survey online only at: www.pulseresearch.com/redbluffdailynews Do it today – Survey will end when enough surveys are completed. *$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 Saturday, October 22, 2011 "Holiday Fantasy" Floral Design Program & Luncheon Red Bluff Garden Club Presents Carlino's, Rolling Hills Casino Featuring Kate Gliem House of Design Designs for the Holiday Season Vendors – Silent Auction Raffle – Live Auction Kathy, 527-9403 – Diane, 824-5661 House of Design, 527-8844 California Kitchen, 529-2482 Reserved Tickets $25.00 Purchase by October 12, 2011 Tickets: said Nick Kalivas, vice president of research at MF Global. The Dow rose 131.21 points, or 1.2 percent, to close at 10,939.95. The Dow jumped 153 Tuesday after another late-day surge. The Standard & Poor's 500 rose 20.09, or 1.8 per- cent, to 1,144.04. The Nas- daq composite jumped 55.69, or 2.3 percent, to 2,460.51. European bank stocks soared, reflecting increasing optimism that European leaders will succeed in lim- iting the fallout from Greece's debt problems. Credit Agricole jumped 10 percent, and BNP Paribas gained 9 percent. European markets rose broadly. Germany's DAX jumped 5 percent. Bench- mark indexes in France and Italy rose 4 percent. Reports that the U.S. economy continued to grow in September also sent stock indexes higher. The Institute of Supply Management said its gauge of the U.S. service sector, which employs 90 percent of the work force, grew in line with Wall Street's expectations. The index measures the strength of health care providers, banks, real estate, and other businesses outside of man- ufacturing.