Indian ADRs end higher led by tech and banking ADRs
U.S. stocks rose on Monday, 16 December 2013 as a flurry of economic data indicated solid improvements in business activity across the country. Investors are also focused on the Fed's two-day policy meeting and its decision about the $85 billion bond-buying stimulus program, with some investors expecting tapering to begin this month.
The Dow closed higher for the second-straight session, up 129.21 points or 0.8% higher to 15,884.57. The Nasdaq Composite index closed up 28.54 points, or 0.7%, rising to 4,029.52. The S&P broke a four-day losing streak and closed 11.22 points, or 0.6%, higher at 1,786.54.
U.S. economic data released Monday showed that an index of manufacturing conditions in the New York area recovered slightly in December. Productivity in the third quarter was revised up to 3% from an initial read of 1.9%, and industrial production in November saw the biggest one-month percentage gain in a year, to reach a record high level. Markit reported that the flash manufacturing purchasing managers' index inched lower to a 54.4 reading in December, but still signaled solid business conditions.
The biggest event for financial and commodity markets next week is the Federal Open Market Committee meeting on Tuesday and Wednesday, and until the Federal Reserve makes an announcement on monetary policy, traders will likely spend the early part of the week preparing for the outcome.
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Two major deals caught investors' attention on Monday. Chipmaker Avago Technologies is buying LSI Corp. for $6.6 billion. Avago rose $4.45, or 10%, to $50.10, while LSI rose $3.05, or 39%, to $10.96.
Among other news under focus, AIG is selling its aircraft leasing business for about $5.4 billion to Dutch leasing company AerCap. AIG has been selling major assets after getting a bailout during the financial crisis. Its shares rose 55 cents, or 1%, to $50.28.
Among other major stocks under foucs, shares of Twitter fell 4.1% after Well Fargo downgraded the stock. IBM shares rallied 2.9%, as the Dow's worst performer of the year attracted those who like to bet on the underdogs. Exxon Mobil shares rose 2% after Goldman Sachs upgraded the stock to buy from neutral.
Crude oil futures finished higher on Monday, 16 December 2013 at Nymex with political unrest in North African oil producer Libya lifting prices back above $97 a barrel ahead of a decision by Federal Reserve officials due later this week on the central bank's stimulus program. January crude oil added 88 cents, or 0.9%, to settle at $97.48 a barrel on the New York Mercantile Exchange.
Bullion prices rallied on Monday, 16 December 2013 at Comex. Gold futures settled higher on Monday for a second session in a row, with traders mulling the fate of the Federal Reserve's bond-buying program ahead of the central bank's meeting this week. Gold for February delivery rose $9.80, or 0.8%, to settle at $1,244.40 an ounce on the Comex division of the New York Mercantile Exchange. Prices, which had been seesawing between minor losses and gains earlier. March silver jumped 50 cents, or 2.5%, to end at $20.10 an ounce.
Indian ADRs ended higher on Monday. In the IT space, Infosys rose 2.4% at $55.66 and Wipro gained 1.4% at $11.86. In the banking space, ICICI Bank jumped 2.7% at $36.81 and HDFC Bank added 1.5% at $34.61. In the other sectors, Tata Motors was up 0.83% at $30.40 and Dr Reddys Laboratories was up 2.4% at $39.45.
All eyes will be turned towards the FOMC meet which kicks off tomorrow.
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