US markets at a record after bonanza day

Wall Street has soared to record highs after its biggest one day "melt-up" for almost five years.
Investors, recently prone to bouts of risk aversion on concerns about a flagging US housing scene and deepening troubles in credit markets, swallowed their fears and bought stocks as quickly as they could.
By the time the closing bell rang, the Dow Jones industrial average had surged 284 points - its biggest daily point gain since a 378-point rise on October 15, 2002 - day No. 4 of the current bull market. It notched another record high close at 13,861.73, and all 30 stocks in the Dow rose on the day.
"This is what we old timers call a melt-up," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
"It's been a crazy day, a fun day, the kind of day we don't see nearly as much as we'd like - it gives us the chance to do a lot of good stuff because we work best when we're busy."
In the Standard & Poor's 500 index, the US stock market gauge most widely tracked by professional investors, just 38 stocks finished the day lower. It, too, closed at a record - 1,547.70.
The tone for the day was set hours before the exchanges officially opened. A parade of big-name retailers like Wal-Mart Stores, Target Corp and JC Penney offered reassuring commentary on the state of consumer spending, countering unsettling outlooks earlier in the week from Home Depot and Sears Holdings.
"It was an extremely busy day on our trading desk, with multiple orders even before the open," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
"As much better retail sales numbers came rolling in, you knew there was going to be a lot of buying and that's what you saw."
What separated the day from so many others that have begun with a bang only to end with a fizzle, is that this one closed with an even bigger bang.
With the market holding its gains into the afternoon, many bearish-minded investors who've been betting against stocks were forced to reverse those positions on the fly, accelerating gains into the close.
"As the market's gains stayed in after the first few hours, it emboldened buyers to come in and keep buying even as the prices were going up, both in retail and in the markets in general," Wedbush's James said. "I think that highlights the magnitude of people who had been short the market."
The upward march was also fuelled by money flowing in from other assets, notably bonds. US Treasuries ended the day lower as the charge into equities sapped money from safer securities. The benchmark 10-year US Treasury note fell 11/32 in price, while its yield rose to 5.14 per cent from 5.09 per cent late yesterday.
"Wow!" Dan Peirce, a portfolio manager in the global asset-allocation group at State Street Global Advisers, said of today's market.
"I think there's a lot of money that's been focused on bonds and becoming dillusioned with them for several reasons. People are realising that equities are offering a little more exciting opportunities."
Peirce said while housing and mortgage problems are visible and unlikely to improve, the stock market is heavily exposed to the "prospering global markets."
Even still, Peirce said: "I didn't expect to see this dramatic of a move today."