Discussing the ECB's plan to buy short-dated Spanish and Italian bonds and the future of the euro, with CNBC's Kelly Evans, Michelle Caruso-Cabrera, Silvia Wadhwa, and Barclays' Barry Knapp.
By NBC News wire services
Updated at 10:38 a.m. ET: Stocks moved sharply higher Thursday after European Central Bank President Mario Draghi unveiled details of a new bond-buying plan designed to ease the euro zone's ongoing debt crisis.
The Dow Jones industrial average was lately up over 230 points, hitting its highest level since June 29. The broader S&P 500 stock index hit its highest level since May 2008.
"It's definitely giving more comfort to the market. It was what the market was looking for, and we can see that the yields on Italian, Spanish and Portuguese bonds have already come down," said Rex Macey, CIO of Wilmington Trust Investment Advisors.
Earlier, Wall Street got another boost from payrolls processor Automatic Data Processing, which reported that employers added more private sector jobs than expected in August.
The report said the private sector added 201,000 jobs last month, versus economists' expectations of 140,000 new jobs. August's figure was the highest since March, when the economy's job creating engine was moving at a faster pace before dropping into lower gear in the summer.
Another report showed the number of Americans filing new claims for jobless benefits fell last week to its lowest level in a month, also an upbeat signal for a labor market that has struggled to create enough jobs.
The ECB's new bond-buying program will lower struggling euro zone countries' borrowing costs which would serve as a "fully effective backstop", ECB President Draghi said.
The ECB Governing Council agreed on the "modalities of outright monetary transactions", Draghi told a news conference after the Council's monthly policymaking meeting in Frankfurt.
Seeking to back up his pledge to do whatever it takes to preserve the euro, Draghi said the new bond-buying program, aimed at the secondary market, would "safeguard the monetary policy transmission in all countries in the euro zone area.?
It would address bond market distortions and the "unfounded" fears of investors about the irreversibility of the euro.
The scheme, which the Bundesbank is known to have opposed, would be a "fully effective backstop to prevent potentially destructive scenarios," he said.
"We are strictly within our mandate," Draghi said.
Reuters contributed to this report.
Source: http://marketday.nbcnews.com/_news/2012/09/06/13703872-stocks-rally-on-optimism-about-europe?lite
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