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Good gains for US stocks

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Technology rebounded to lead market

U.S. stocks rose on Monday, 19 June 2017 with both the Dow and the S&P 500 ending at new records as technology rebounded from a recent bout of sharp weakness to lead the market higher.

The Dow Jones Industrial Average rose 144.71 points, or 0.7%, to 21,528.99, ending at its highs of the day, which represented both an intraday and a closing record. With the day's move, the blue-chip average is up 8.9% so far this year. The S&P 500 gained 20.31 points to 2,453.46, a gain of 0.8%. The large-cap index, up 9.6% in the year to date, hit its own intraday record of 2,453.82 on Monday finished near that high. The Nasdaq Composite Index rose 87.25 points to 6,239.01, a gain of 1.4%.

Among the most notable tech gainers on Monday, Apple rose 2.9% in its biggest one-daadvance since February, while Facebook was up 1.5%. Among other major internet names, Amazon.com added 0.8%.

The closely watched dollar index, rose by 0.3% on Monday, providing a headwind for commodities priced in the currency. A stronger dollar tends to make assets pegged to the buck more expensive to buyers using other monetary units.

Economic uncertainty could continue to hold sway over metals and currency trading, although few major economic data releases are due at the week's start.

Last week, Fed Chairwoman Janet Yellen laid out a plan to shrink the central bank's massive $4.5 trillion balance sheet, one of its economy-spurring tools, starting this year, as they also raised interest rates.

Bullion prices finished in negative territory on Monday, 19 June 2017 as the dollar strengthened and as investors favored assets perceived as risky over so-called havens. Gold has been plagued by a downbeat tone in the wake of recent signals from the Federal Reserve for at least one more increase to interest rates this year in what has been interpreted as an upbeat outlook on US economy. That view sent the yellow metal down for a second straight week last week because higher rates make gold and other commodities, which don't bear yields, less appealing.

August gold fell $9.80, or 0.8%, to $1,246.70. The metal suffered a 1.2% weekly decline last week. July silver fell 15.9 cents, or 1%, to $16.502 an ounce, marking its third straight decline.

U.S. crude-oil benchmark gave up a modest gain to settle at a seven-month low on Monday, 19 June 2017 at Nymex as worries about U.S. output growth persisted. On the New York Mercantile Exchange, light, sweet crude for delivery in July fell 54 cents, or 1.2%, to close at $44.20 a barrel, its lowest close since Nov. 14. August Brent crude on London's ICE Futures exchange, the global benchmark, declined 46 cents, or 1%, to end at $46.91 a barrel.

Overabundance of oil has suppressed prices for nearly three years. Even though major producers in the Organization of the Petroleum Exporting Countries and Russia have sidelined a portion of their output since January, the market remains well-over saturated and oil storage around the world is in surplus.

In the bond market, U.S. Treasuries settled lower across the curve with the benchmark 10-yr yield climbing four basis points to 2.19%.

Investors did not receive any economic data on Monday. The first report of the week--first quarter Current Account Balance (consensus -$123.4 billion) will cross the wires on Tuesday at 8:30 ET.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 20 2017. 10:59 IST
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