On Monday, the 30-stock Dow Jones industrial average finished higher by 124.17 points, or 1.28%, at 9,789.36. The broad Standard & Poor’s 500-stock index was up 18.60 points, or 1.78%, at 1,062.98. The tech-heavy Nasdaq composite index gained 39.82 points, or 1.90%, to 2,130.74.
On the New York Stock Exchange, 23 stocks were higher in price for every six that declined. Breadth on the Nasdaq was 19-6 positive. Trading was slow on the Yom Kippur religious holiday, notes S&P MarketScope.
Treasuries soared even though stocks advanced. The dollar index was higher. Gold futures fell. Crude oil futures were higher.
A number of big-name companies announced deals.Xerox (XRX ) agreed to purchase Affiliated Computer Services (ACS ). Abbott Laboratories (ABT ) announced plans plans to purchase the pharma unit of Belgium’s Solvay. Johnson & Johnson (JNJ ) boosted its stake in Dutch biotech firm Crucell as well.
The financial, basic materials, and oil & gas sectors were among the market leaders.
Investors are apparently acting on the perception that third- and fourth-quarter earnings will be stronger-than-expected in a clear sign the recession is over and the economic recovery is at hand, says S&P MarketScope.
Wall Street also weighed a Wall Street Journal report Monday that $35 billion in support of state and local housing agencies will be committed by the White House to provide mortgages to low-income earners.
There were no significant economic reports released Monday. Traders were awaiting Tuesday’s reports on the August S&P/Case-Shiller 20-city home price index and the Conference Board’s September consumer confidence Index.
Later in the week, Wall Street will get news on the health of the recovery with the final second-quarter U.S. gross domestic product (GDP) revision Wednesday, which S&P sees down 1.3% vs. the 1.0% drop reported in the preliminary reading.
On Thursday, personal consumption expenditures for August are expected to rise 1.0% and weekly initial jobless claims are seen remaining unchanged at 530,000.
The main event, data-wise, will be the releases of the September employment report on Friday. S&P sees nonfarm payrolls down 160,000 on the month, vs. a decline of 216,000 in August.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info