Jump in oil prices and a pullback in the dollar lift sentiments
U.S. stocks closed higher at fresh records on Monday, 21 November 2016 aided by a jump in oil prices and a pullback in the dollar, giving the Dow industrials, S&P 500 and Nasdaq their third simultaneous all-time closing highs this year. Bullish investors also welcomed comments from Federal Reserve Vice Chair Stanley Fischer, who said fiscal policy can do more to help the economyand even lift interest rates.
The Dow Jones Industrial Average gained 88.76 points, or 0.5%, to close at a record 18,956.69, The Nasdaq Composite Index advanced 47.35 points, or 0.9%, to finish at 5,368.86. The S&P 500 index surged 16.28 points, or 0.8%, to close at a record 2,198.18.
Ten of the 11 main S&P 500 sectors finished in the green with energy leading gains, up 2.2%, and the materials sector gaining 1.3%. The real-estate sector was the only decliner, finishing down 0.2%.
The Dow was led by gains in DuPont, Apple and IBM.
The major averages jumped at the start of the session as crude oil extended its recent winning streak. The energy component rallied 4.1% after several oil producers made upbeat comments regarding the elusive OPEC supply cap agreement. Stronger oil prices and a moderation of dollar strength are providing relief for the market, along with a return to earnings growth.
Since Election Day on Nov. 8, the Dow has climbed 3.4%, the S&P 500 has gained 2.7% and the Nasdaq has risen 3.4%.
A sharp rally in the dollar and 10-year Treasury yields last week dampened the post-election stock surge on Friday. But on Monday, the dollar eased slightly, with the ICE Dollar Index which measures the currency against a basket of six currencies, ended down 0.3% to 100.90. The 10-year Treasury yield fell 3.4 basis points to 2.322%.
In the tech sector, Amazon.com shares rallied 2.6% as the holiday shopping season ramps up. Facebook said it would hire an additional 500 employees in the U.K., according to media reports. Shares rose 4.1%.
There was no economic data of note released today.The bulk of the week's economic indicators are expected Wednesday, including an update on durable-goods orders and the minutes of the latest Federal Open Market Committee meeting.
Today's trading volume was below the recent average of one billion as fewer than 842 million shares changed hands at the NYSE floor.
Tomorrow's economic data will be limited to the Existing Home Sales Report for October (consensus 5.40 million), which will be released at 10:00 ET.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
