AP: Commodities soar as investors' risk appetite grows
NEW YORK — Prices for oil, copper and other commodities surged Thursday as investors sent a clear signal that they believe the economy is turning around and will send demand for basic goods higher.
The optimism grew out of several surprisingly strong profit reports from companies, including cell phone maker Motorola Inc., and an unexpected drop in the number of people continuing to seek unemployment benefits.
An increased appetite for risk also drove prices higher on the stock market, where major indexes rose about 1 percent, including the Dow Jones industrials, closed up 84 points.
Commodity prices have wavered in recent weeks, tugged back and forth by differing signals on the economy.
Several signs this week suggested that consumers are still reluctant to spend, including a weak report on consumer sentiment and a drop in orders for large manufactured goods. However Thursday's news on earnings and the economy was enough to reignite hopes that a turnaround is possible by the end of this year.
On the New York Mercantile Exchange, September copper futures jumped 8.65 cents, or 3.5 percent, to $2.5640 a pound.
Among precious metals, gold for December delivery rose $7.60 to $937.30 an ounce, while September silver jumped 22.7 cents, or 1.7 cents, to $13.4850 an ounce. Platinum rose $16.80, or 1.5 percent, to $1,189 an ounce.
Elsewhere on the Nymex, energy futures rallied, with oil, gas, heating oil and natural gas futures all surging at least 5 percent.
Crude prices had fallen 6 percent Wednesday as regulators met in Washington to consider new limits on speculators, which many blame for the volatility in oil and gas prices. But prices recouped nearly all of those losses Thursday, rising $3.59, or 5.6 percent, to settle at $66.94.
Gasoline for August delivery jumped 13.61 cents, or 7.3 percent, to $1.9911 a gallon and heating oil added 9.72 cents, or 5.8 percent, to $1.7685 a gallon. Natural gas for September delivery surged 19.5 cents, or 5.5 percent, to $3.743 per 1,000 cubic feet.
Grain prices posted big gains on the Chicago Board of Trade.
November soybeans surged 55 cents to $9.71 a bushel.
September wheat futures rose 4.75 cents to $5.1625 a bushel, while corn for September delivery rose 11.5 cents to $3.3225 a bushel.
Other soft commodities, including cotton, sugar, cocoa and coffee, also rose.
