EconomyEditor's PickNewsDow Adds to Gains as Energy Jumps; Trump to Leave Hospital on Monday

1 year ago99 min
https://topinvestingtoday.com/wp-content/uploads/2020/10/LYNXNPEE7L1A5_M-8g6kXU.jpeg
imageStock Markets50 minutes ago (Oct 05, 2020 03:03PM ET)

(C) Reuters.

By Yasin Ebrahim

Investing.com – The Dow rallied Monday, led by energy on surging oil prices and confirmation that President Trump will be discharged from hospital later today.

The Dow Jones Industrial Average rose 1.45%, 397 points. The S&P 500 was up 1.56%, while the Nasdaq Composite gained 2%.

Investor sentiment on stocks was also helped by news that President Donald Trump will be leaving Walter Reed National Military Medical Center at 6:30 p.m. ET on Monday.

Energy rose more than 2% to lead the broader market higher as oil prices rose on fears of supply disruptions amid a strike in Norway’s energy industry and a tropical storm forecast on a path toward the U.S. gulf coast.

Occidental Petroleum (NYSE:OXY), Valero Energy (NYSE:VLO) and TechnipFMC PLC (NYSE:FTI) were among the biggest gainers in energy.

Tech also led the move higher as as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) Alphabet (NASDAQ:GOOGL), Facebook (NASDAQ:FB) rose more than 1% while Amazon.com (NASDAQ:AMZN) was up 2%. Together these five stocks make up a quarter weighting of the S&P 500.

In other tech news, DocuSign (NASDAQ:DOCU) jumped 3% after Morgan Stanley upgraded the stock to overweight from equal weight, citing strong fundamentals.

Financials, mostly banks – ahead of their quarterly earnings expected next week – were pushed higher by rising bond yields as the United States 10-Year rose to its highest levels since August.

JPMorgan Chase (NYSE:JPM), and Bank of America (NYSE:BAC) rose more than 1%, while Citigroup (NYSE:C) surged 3%.

The move higher in value stocks like financials was also supported increasing hopes that U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will be able to progress their weekend talks to a deal.

The economy has appeared resilient despite the lack of stimulus as data showed services activity last month topped economists’ estimates.

“The headline PMI improved in September to 57.8 from 56.9. The index remains off the July high of 58.1 (strongest since February 2018), but the details of the data are the most encouraging that we have seen since the recovery began,” Jefferies (NYSE:JEF) said in a note.

Dow Adds to Gains as Energy Jumps; Trump to Leave Hospital on Monday

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *