Deal news fuel moderate rally at Wall Street
Indian ADRs end mostly higher led by ICICI Bank and Tata Motors
The U.S. stock market ended Monday's choppy trading session slightly higher on 09 June 2014, as both the S&P 500 and Dow Jones Industrial Average closed at record levels. Equity indices climbed out of the gate with the early sentiment boosted by a set of acquisitions in three influential sectors; however, the intraday strength did not last after the Dow Jones Transportation Average surrendered its morning gain after outpacing the broader market over the past few weeks.
The Dow Jones Industrial Average rose 18.82 points, or 0.1%, to 16,943.10. The Nasdaq Composite ended the day up 14.84 points, or 0.3%, at 4,336.24. The S&P 500 closed up 1.83 points, or 0.1%, to 1,951.27, hitting a record level for the 19th time this year.
Six out of ten economic sectors ended higehr led by technology, consumer discretionary and energy sectors.
It was another listless trading day Monday. With no major geopolitical events making news headlines, and no major economic data out Monday, the markets were quiet.
M&A deals between Tyson Foods and Hillshire Brands Co.; Analog Devices and Hittite Microwave; and Merck & Co. and Indenix Pharmaceuticals added to optimism on Wall Street.
A main theme in the market place continues to be the bull market runs in U.S. and other major world stock markets. With many of the leading world stock indexes at or near record or multi-year highs, other asset classes like raw commodities have seen trader and investor buying interest limited. With extremely low interest rates and scant worries about inflationary price pressures at present, paper assets like stocks and bonds have fared better, compared to hard assets that tend to see better demand during times of inflation or keener geopolitical uncertainty.
Bullion prices ended moderately higehr at Comex on Monday, 09 June 2014. Gold futures settled with a modest gain on Monday, holding above $1,250 an ounce for a third straight session. Higher crude oil prices were a bullish outside market for the precious metals on Monday, but a higher U.S. dollar index was a bearish outside market as an offset.
Gold for August delivery added $1.40, or 0.1%, to settle at $1,253.90 an ounce on the Comex division of the New York Mercantile Exchange. July silver rose 7.5 cents, or 0.4%, to $19.07 an ounce.
Crude Oil futures climbed above $104 a barrel on Monday, 09 June 2014 at Nymex to settle at their highest level since early March, as signs of improving economies in China and Japan and stimulus measures by the European Central Bank raised the outlook for energy demand.
Crude oil for July delivery rose $1.75, or 1.7%, to settle at $104.41 a barrel on the New York Mercantile Exchange.
Light participation continued to plague the market at the start of the week with only 595 million shares changing hands at the NYSE.
Indian ADRs ended higher on Monday. In the banking space, ICICI Bank added 0.79% at $52.24 and HDFC Bank rose 0.23% at $47.43. In the IT space, Infosys was down 0.12% at $51.95 and Wipro jumped 0.53% at $11.36. In the other sectors, Tata Motors gained 0.96% at $39.91 and Dr Reddy's Laboratories was up 0.23% at $39.74.
Tomorrow, the Wholesale Inventories report for April (consensus 0.3%) and the April Job Openings and Labor Turnover Survey will both be released at 10:00 ET.
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