Traverse City Record-Eagle

Business

June 28, 2012

Stocks finish strong despite fears

The Associated Press Associated Press

A rare double shot of good news about the U.S. economy sent stocks strongly higher Wednesday. The Dow Jones industrial average rose 92 points despite lingering fear about Europe's debt turmoil.

Americans signed more contracts to buy previously occupied homes in May, matching the fastest pace in two years, the National Association of Realtors said. It was the latest signal that the housing market is improving in many regions following a slump of more than six years.

The Dow closed up 92.34 points, or 0.7 percent, at 12,627.01. Coca-Cola rose $1.26, or 2 percent, to $76.34, after saying it will invest another $3 billion in India's rapidly growing consumer market over the next eight years.

The Standard & Poor's 500 index rose 11.86 points, or 0.9 percent, to 1,331.85. Its biggest loser by far was auto parts maker O'Reilly Automotive, which fell $13.83, or 14 percent, to $82.61. O'Reilly said its second-quarter earnings will be at the low end of its earlier estimates and sales will be weaker than previously expected.

The Nasdaq composite average rose 21.26 points to 2,875.32.

Investors remain wracked with concern about Europe as leaders there prepare for a two-day summit aimed at defusing their lingering debt crisis. German Chancellor Angela Merkel warned Wednesday that there would be no quick solution to the structural issues plaguing the continent.

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