Stocks soared today, the first trading day of 2011.
The Dow Jones Industrial Average climbed 93 points, or 0.8%, to close at 11,671, the index's best close since August 2008. The Nasdaq Composite Index rose 39 points, or 1.5%, to 2,692, and the Standard & Poor's 500 Index gained 14 points, or 1.1%, to close at 1272.
Financials helped lead the rally, thanks to Bank of America (BAC), which said it agreed to a mortgage settlement with Fannie Mae and Freddie Mac. The bank jumped 85 cents, or 6.4%, to $14.19.
Also adding to momentum was a report that showed continued expansion in the manufacturing sector. The Institute for Supply Management's manufacturing index rose to 57 in December, up slightly from a reading of 56.6 in November. It was the 17th straight month of expansion in the sector. Readings above 50 indicate expansion.
A good start to January typically means a good year for stocks, according to the Stock Trader's Almanac. In fact, if the S&P 500 rises the first five days of January, that means annual gains nearly 90% of the time.
"All of the forecasts come out of Wall Street, and those expectations for the year give January a nice indicative effect of what the year will look like," Jeffery Hirsch, the editor of the Stock Trader's Almanac told The Associated Press.
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