Plus   Neg

Stocks Move To The Upside, Dow And S&P 500 Reach Record Highs - U.S. Commentary


Stocks have moved mostly higher in morning trading on Monday following the mixed performance seen last week. With the upward move on the day, the Dow and the S&P 500 have climbed to new record intraday highs.

Currently, the major averages are hovering near their best levels of the day. The Dow is up 106.74 points or 0.5 percent at 21,491.02, the Nasdaq is up 72.34 points or 1.2 percent at 6,224.10 and the S&P 500 is up 16.69 points or 0.7 percent at 2,449.84.

The buying interest on Wall Street may be partly in reaction to strength in the overseas markets, which benefited from political news out of Europe.

French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.

Additionally, Brexit negotiations with the EU have begun after Britain bowed to pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants.

Trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

The economic calendar for the week remains relatively quiet, although traders are likely to keep an eye on reports on new and existing home sales and leading economic indicators.

Meanwhile, New York Federal Reserve President William Dudley predicted that inflation will gradually rise as a tight labor market leads to higher wages.

"Inflation is a little lower than what we would like, but we think that if the labor market continues to tighten, wages will gradually pick up and with that, inflation will gradually get back to 2 percent," Dudley said.

The comments from Dudley come after the Fed's widely expected to decision to raise interest rates by a quarter point last week.

Steel stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Steel Index up by 2.1 percent. The index is climbing further off the seven-month closing low it set last Thursday.

The rally by steel stocks comes after Commerce Secretary Wilbur Ross told Bloomberg that President Donald Trump intends to take "bold action" to address the national security risks posed by steel imports.

Semiconductor, biotechnology, and banking stocks are also seeing considerable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.6 percent, while Hong Kong's Hang Seng Index jumped by 1.2 percent.

The major European markets have also moved to the upside on the day. While the U.K.'s FTSE 100 Index has advanced by 0.9 percent, the German DAX Index and the French CAC 40 Index are both up by 1.2 percent.

In the bond market, treasuries have pulled back into negative territory after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.1 basis points at 2.178 percent.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Follow RTT