Utilities and consumer discretionary stocks led gains
US stocks ended with small gains at Wall Street on Monday, 12 October 2015. Gains on Wall Street were modest, however, as investors appeared to pause after last week's rally. The Dow Jones Industrial Average eked out a small gain on Monday, extending its winning streak to seven daysits longest since December 2014.
The S&P 500 closed 2.57 points, or 0.1%, higher at 2,017.46, with eight of its 10 main sectors closing with gains. Utilities and consumer discretionary stocks led gains. The Dow Jones Industrial Average added 47.30 points, or 0.3%, to 17,131.46. The Nasdaq Composite finished the day up 8.17 points, or 0.2%, at 4,838.64.
The stock market began the trading week on a sleepy note with a Monday session that saw the S&P 500 bounce around an eight-point range. The People's Bank of China announced over the weekend that it will expand a pilot program aimed at boosting bank lending, a move interpreted as a version of quantitative easing. Markets in Asia closed mainly higher after the news, as a People's Bank of China official also said China's stock-market correction is almost over.
With the bond market closed for Columbus Day, a fair share of participants elected to forego the Monday session.
The subdued activity was highlighted by below-average trading volume as fewer than 700 million shares changed hands at the NYSE floor.
The top-weighted technology sector hovered just above its flat line throughout the day. Large sector components like Apple, Microsoft, Alphabet and Facebook traded in mixed fashion while EMC spiked 1.8% after agreeing to be acquired by Dell for $67 billion in cash and stock.
Also Read
Bullion prices ended higher at Comex on Monday, 12 October 2015. Gold futures posted their highest close in more than three months on Monday, as the yellow metal extended its gains from the prior week amid bets for a further delay in U.S. interest-rate hikes. Gold for December delivery settled $8.60, or 0.7%, higher at $1,164.50 an ounce on Comex for its highest settlement since July 6, when the precious metal finished at $1,173.20. Meanwhile, December silver tacked on 4 cents, or 0.2%, to finish at $15.86 an ounce.
Discussion in the marketplace remains on U.S. Federal Reserve monetary policy and just when the Fed might raise U.S. interest rates for the first time in several years. Recent weaker U.S. economic data (namely the employment reports of the past two months) have led many to believe the Fed won't raise interest rates this year. This growing notion has been bullish for stocks, most raw commodity markets and U.S. Treasuries, but has been bearish for the U.S. dollar.
The outside markets on Monday saw the U.S. dollar index slightly lower and at a three-week low. Crude oil prices traded sharply lower on Monday on a corrective pullback after hitting a 2.5-month high of $50.92 a barrel Friday. The Russian military action in Syria had helped to give the geopolitically sensitive oil markets a boost recently.
Weakness in the dollar which was wavering in Monday trade, has helped give gold a lift. A stronger greenback can weigh on dollar-denominated commodities like gold because it makes them pricier for holders of other currencies.
Investors did not receive any economic data today, but tomorrow, the Treasury Budget for September will be reported at 14:00 ET (consensus $95.00 billion).
Powered by Capital Market - Live News