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

1 year ago99 min
imageStock Markets50 minutes ago (Oct 05, 2020 03:03PM ET)

(C) Reuters.

By Yasin Ebrahim – 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 (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

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