US stocks kick off new week on a strong note

Indian ADRs end mostly higher led by Wipro Technologies

U.S. stocks climbed on Monday, 09 September 2013 at Wall Street with the S&P 500 extending its longest win streak since July, as investors anticipated the unveiling of Apple's new iPhone models. Equities climbed from the open, bolstered by reassuring economic reports out of China and Japan, headlines suggesting a strike against Syria could possibly be avoided, and the notion that the relatively disappointing employment report on Friday has lowered the probability of a big tapering announcement at the September 17-18 FOMC meeting.

The Dow Jones Industrial Average rose nearly 166 points and finished up 140.62 points, or 0.9%, at 15,063.12, its best performance in more than eight weeks. The S&P 500 index climbed 16.54 points, or 1%, to 1,671.71. The Nasdaq Composite index rose 46.17 points, or 1.3%, to 3,706.18.

All ten economic sectors ended higher led by materials and information technology sectors. Among the Dow gainers, Caterpillar led gains that included all but one of thirty Dow components.

In economic news, China during the weekend reported strong exports during August, at up 7.2% on an annualized basis. Strong Chinese import levels for August were also reported, at up 7.0% year on year. Consumer inflation in China rose 2.6% in August, year on year, which was in line with expectations. China industrial production figures are due out Tuesday. There was also strong GDP data coming out of Japan on Monday. The upbeat Asian economic data is a bullish underlying factor for the precious metals markets.

At Wall Street, according to the Federal Reserve, consumer credit increased by $10.4 billion in July. This followed the prior month's increase of $11.9 billion, and was lower than the $13.0 billion that had been broadly expected by market.

Traders and investors are already looking ahead to next week's meeting of the U.S. Federal Reserve's Open Market Committee (FOMC). Last Friday's weaker than expected U.S. jobs report did not really shed any fresh light on whether the Fed might start to taper its monthly bond-buying program sooner or later. Still, it appears a slight majority of the market place believes the U.S. central bank at next week's meeting will announce it will begin to scale back its quantitative easing.

Apple rose 1.6% before an investor event where the iPhone maker will unveil upgraded versions of its smartphone.

Bullion prices ended almost steady on Monday, 09 September 2013 at Comex. Gold prices ended the U.S. day session near unchanged in quiet activity as a lack of fresh, bullish fundamental news limited buying interest. However, heightened geopolitical tensions limited the downside price pressure in gold. Gold for December delivery added 20 cents to settle at $1,386.70 an ounce on the Comex division of the New York Mercantile Exchange. December silver shed 17 cents, or 0.7%, to settle at $23.72 an ounce.

Oil prices closed lower on Monday, 09 September 2013 at Nymex retreating from their highest close in more than two years as investors' worries over a potential U.S. attack against Syria appeared to ease. The drop in oil prices came ahead of a major public push by President Barack Obama to gain support for a retaliatory strike against Syrian government targets amid evidence that the regime used chemical weapons against civilians.

October crude oil pulled back from its session high of $110.20 per barrel set at floor trade open and settled with a 0.9% loss at $109.53 per barrel.

Indian ADRs ended mostly higher on Monday. In the IT space, Wipro rose 7.4% at $10.04 and Infosys added 1.9% at $47.55. In the banking space, HDFC Bank advanced 1.5% at $31.19 and ICICI Bank was down 0.3% at $31.05. In the other sectors, Tata Motors jumped 2.9% at $25.14.

For every stock on the decline, roughly four rose on the New York Stock Exchange, where almost 639 million shares added. Composite volume breached 3 billion.

There is no economic data of note scheduled to be reported tomorrow.

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