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Dow Rises 173 in Volatile Day
Fed's beige book reports economic contraction
By Nick McMaster
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Posted Dec 3, 08 3:25 PM CST
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(Newser)
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Stocks pulled higher again today after a roller coaster day that saw the Dow swing temporarily into triple-digit losses, the Wall Street Journal reports. Despite dour data on the economy, stocks rose ahead of a November jobs report, due Friday, that is expected to report large losses. The Dow gained 172.60 points to close at 8,592. The Nasdaq closed up 42.58 points at 1,492, while the S&P 500 rose 21.93 points to settle at 871.
The Institute of Supply Management said that its index of service-sector activity dropped from 44.4 to 37.3 in November, a bigger contraction than expected. The Federal Reserve released its “beige book” of economic indicators, which reported weakening economic activity across the country over the last month. But the cost of interbank lending fell, with the overnight Libor rate down to 0.88% from 1.00%, as the Fed extended its commitment to emergency liquidity facilities.