Stocks closed higher for the fifth week in a row, after China's central bank cut its benchmark interest rate. Bobbi Rebell reports.
U.S. stocks cheering China's central bank rate cut and new asset purchases by Europe's central bank. The Dow, S&P 500 and Nasdaq - all up for the day. Arrows up for the week as well - setting up a fifth consecutive week of gains. Much of the markets driven Mergers and Acquisitions deals, which hit a 7-year high, mostly because of big deals in the oil and gas sector. It's not even Christmas yet, but stock markets got a big gift when the People's Bank of China surprised investors cutting one-year benchmark lending rates for the first time in more than two years. The bank is trying to breath new life into the world's second-biggest economy. Shares of miners, a proxy for an expected pickup in Chinese economic activity, were among the biggest gainers in the S&P 500. The rate cut in China came after European Central Bank head Mario Draghi said "excessively low" inflation had to be raised quickly by whatever means necessary. ECB said it started buying asset-backed securities to encourage banks to lend. Separately, the ECB dropped Citigroup from its experts' working group on foreign exchange, days after Citi got fined by U.S. and UK regulators for failing to stop traders from trying to manipulate the currency market. Citi shares, however, inched higher. GameStop slid after its quarterly revenue and profit came in well below analysts' estimates. European shares surged on China's rate cut and Draghi's comment.