Fed Spurs Rally; Dow Up 120

Homebuilders gain as Toll Brothers reports strong profit
By Nick McMaster,  Newser Staff
Posted Aug 12, 2009 3:14 PM CDT
Sal Spaltro, with Albert Fried & Co., watches at a television monitor as the Fed Interest Rate is announced, while working on the floor of the New York Stock Exchange Wednesday, Aug. 12, 2009.   (AP Photo/Richard Drew)
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(Newser) – Stocks surged to gains before and after the Fed’s relatively positive report on the economy, the Wall Street Journal reports. Most investors took the Fed’s decision to end its buying of long-term Treasurys as a sign that the economy is returning to normal. Financials led gains, along with homebuilders, who rallied on the news of strong profits by Toll Brothers. The Dow closed up 120 points at 9,361. The Nasdaq added 30 points to close at 1,999, and the S&P 500 added 11 points, settling at 1,006.