Major Averages Firmly In Positive Territory In Mid-Day Trading – U.S. Commentary
After an early move to the upside, stocks remain mostly positive in mid-day trading on Monday. With the upward move on the day, the major averages are adding to the strong gains posted last week.
Currently, the major averages remain firmly in positive territory. The Dow is up 269.27 points or 1.1 percent at 24,725.75, the Nasdaq is up 40.49 points or 0.5 percent at 7,728.87 and the S&P 500 is up 19.90 points or 0.7 percent at 2,779.72.
Buying interest was generated in reaction to strength in the overseas markets, as traders shrug off recent concerns about a global trade war.
Traders also continue to react positively to last Friday’s Labor Department report showing stronger than expected job growth in the month of June.
A light day on the U.S. economic front is keeping trading activity somewhat subdued, however, with traders looking ahead to the release of reports on producer and consumer price inflation in the coming days.
Oil service stocks have shown a substantial move to the upside on the day, driving the Philadelphia Oil Service Index up by 2.1 percent.
The strength among oil service stocks comes despite a decrease by the price of crude oil, as crude for August delivery is falling $0.33 to $73.47 a barrel.
Significant strength is also visible among banking stocks, with the KBW Bank Index jumping by 2.1 percent in mid-day trading.
Transportation, brokerage, and computer hardware stocks are also seeing considerable strength, while utilities stocks have shown a notable move to the downside.
In overseas trading, stock markets across the Asia-Pacific region moved significantly higher during trading on Monday. Japan’s Nikkei 225 Index surged up by 1.2 percent, while China’s Shanghai Composite Index spiked by 2.5 percent.
European stocks also moved mostly higher on the day. While the U.K.’s FTSE 100 Index jumped by 1 percent, the French CAC 40 Index and the German DAX Index climbed by 0.6 percent and 0.5 percent, respectively.
In the bond market, treasuries have moved to the downside amid the strength on Wall Street. As a result, the yield on the benchmark ten-year note, which moves opposite of its prices, is up by 2.2 basis points at 2.853 percent.
by RTTNews Staff Writer
Source: Read Full Article