Deal news and easing Ukraine-Russia tensions help stocks rise
U.S. stocks finished with strong gains on Monday, 18 August 2014 helped by deal news and easing Ukraine-Russia tensions. A better-than-expected reading on the housing market also boosted sentiment and kicked off a big week for economic data.
The Dow Jones Industrial Average jumped 175.83 points, or 1.1%, to finish at 16,838.74. The Nasdaq Composite climbed 43.39 points, or 1%, to 4,508.31. The S&P 500 rose 16.68 points, or 0.9%, to close at 1,971.74, adding to its 1.2% weekly gain last week.
The opening push took place after the reports that weighed on risk sentiment on Friday were refuted over the course of the weekend.
There was less risk aversion in the market place on Monday, as evidenced by generally higher stock markets worldwide, including good rallies in the U.S. stock indexes on Monday. Weekend news saw a meeting between Germany, Russia, Ukraine and France, regarding a implementing a cease-fire between Russian-backed separatists and Ukrainian troops.
Traders and investors are awaiting this week's annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins on Thursday. The confab of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak in Jackson Hole. Before the Jackson Hole event comes the Federal Reserve's FOMC minutes on Wednesday afternoon, which as usual will be closely scrutinized.
Technology sector also finished ahead of the S&P 500 even as chipmakers were unable to keep pace after Goldman Sachs downgraded the entire semiconductor space. Large cap components picked up the slack with the likes of Apple and Google ended higher by 1.2% and 1.5%, respectively.
The consumer discretionary sector benefited from M&A activity as Dollar General offered to acquire Family Dollar for $78.50/share.
Economic data was limited to the NAHB Housing Market Index for August, which rose to 55 from 53, while the consensus expected the reading to hold at 53.
Participation was below average with fewer than 600 million shares changing hands at the NYSE.
Bullion prices ended in a mixed mode at Comex on Monday, 18 August 2014. Gold prices ended the U.S. day session moderately lower on Monday and saw pressure from an improved risk appetite in the market place and by the recently stronger U.S. dollar. Gold for December delivery shed $6.90, or 0.5%, to $1,299.30 an ounce. September silver rose 11 cents at $19.64 an ounce.
Crude Oil futures dropped again Monday, 18 August 2014 as investors pushed geopolitical concerns surrounding violence and unrest in Ukraine and Iraq to the back burner. On the New York Mercantile Exchange, light, sweet crude futures for delivery in September fell 94 cents, or 0.9%, to close at $96.41 a barrel.
Tomorrow, July CPI (consensus 0.1%), July Housing Starts (consensus 964K), and Building Permits (consensus 1.001 million) will all be reported at 8:30 ET.
Powered by Capital Market - Live News
