Solid economic data offset concerns about Europe's stability
US stocks closed higher on Monday, 05 December 2016 as the Dow Jones Industrial Average finished at a record on Monday as solid economic data offset concerns about Europe's stability in the wake of a rejection of Italy's vote on Sunday to reform existing constitutional rules. The broader stock market rose after a survey showed that the services side of the economy grew at its fastest pace in November in a year. The Institute of Supply Management non manufacturing index climbed to 57.2 last month. Any reading over 50 indicates economic expansion.
The Dow Industrials rose 45.82 points, or 0.2%, to end at 19,216.24, after touching an intraday record of 19,274.85. The Nasdaq Composite Index advanced 53.24 points, or 1%, to finish at 5,308.89. The S&P 500 index climbed 12.76 points, or 0.6%, to close at 2,204.71 with financials and technology sectors leading the index higher.
Visa, Nike and Goldman Sachs Group were the top gainers on the Dow.
Equity indices enjoyed an upbeat start, rising alongside European stocks, even though the results of the constitutional reform referendum in Italy will invite political uncertainty going forward.
U.S. stocks jumped in November as investors bet that fiscal policies of President-elect Donald Trump's administration, such as tax cuts and infrastructure spending, will can help to boost the economy. Investors are also expecting the Federal Reserve, which meets next week, to raise interest rates for the first time since last December.
On Thursday, the European Central Bank will hold its regular monetary-policy meeting to decide on the scope of its quantitative easing and other measures, and analysts largely expect that will include some extension of its asset-buying program.
Economic data on Mon day was was limited to ISM Services. The ISM Services Index rose to 57.2 in November from 54.8 in October while the consensus expected an increase to 55.6. This report marked a 12-month high for the series, reaching levels from October 2015.
Crude oil retreated from its 17-month high hit earlier in the session ahead of this weekend's non-OPEC producer meeting in Vienna, Austria to hammer out the details of the 600k barrel/day non-OPEC portion of the supply cut announced last Wednesday. Jan 2017 crude oil futures rose $0.05 (+0.1%) to $51.73/barrel. Natural gas surged to end at its highest level of the session ahead of Thursday's EIA Jan 2017 natural gas closed $0.21 higher (+6.1%) at $3.65/MMBtu. In precious metals, gold rebounded from levels near its 10-month low and silver closed at session highs on notable dollar weakness. Feb 2017 gold ended Monday's session down $1.10 (-0.1%) to $1,176.60/oz. March 2017 silver closed session $0.09 higher (+0.5%) at $16.92/oz.
Monday's participation was just below average as 915 million shares changed hands at the NYSE floor.
Tomorrow, Q3 Productivity (consensus 3.3%), Unit Labor Costs (consensus 0.2%), and October Trade Balance (consensus -$41.80 billion) will be released at 8:30 ET while October Factory Orders (consensus 2.5%) will cross the wires at 10:00 ET.
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