Markets closed sharply higher on Monday after posting steep losses last week. The rebound was led by a rally in retail stocks on expectations of robust spending on Cyber Monday. Also, tech stocks rebounded after witnessing huge selloffs last week, while crude oil prices posted their biggest percentage jump in five months. This saw all three indexes posting their best percentage gains in more than two weeks.
The Dow Jones Industrial Average (DJI) advanced 1.5% to close at 24,640.24. The S&P 500 climbed 1.6% to close at 2,673.45. The Nasdaq Composite Index closed at 7,081.85, gaining 2.1%. A total of about 6.68 billion shares were traded on Monday, lower than the last 20-session average of 8.02 billion shares. Advancers outnumbered decliners on the NYSE by a 1.80-to-1 ratio. On Nasdaq, a 1.50-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow added 354.29 points, recording its biggest gain since Nov 7. Shares of General Motors Company GM gained 4.8%. The tech-heavy Nasdaq gained 142.87 points, led by a rally in tech stocks. Shares of Amazon.com Inc. AMZN and Netflix Inc. NFLX increased 5.3% and 1%, respectively. Shares of Facebook FB gained 3.5%.
The S&P 500 gained 40.89 points, with communication services and tech stocks once rallying. The Communication Services Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) gained 2.3% each. The Consumer Discretionary Sector SPDR (XLY) gained 2.2%. All 11 major S&P 500 sectors ended in positive territory. Shares of Target Corporation TGT increased 2.8%. Target has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Retail Stocks Rally on Cyber Monday
Retail stocks were in focus on Monday on expectations of robust spending on Cyber Monday. The rally comes after stocks suffered the worst Thanksgiving week since 2011. Expectations were high that Monday would witness robust spending online with retailers luring shoppers with a flurry of offers and discounts. Cyber Monday spending is expected to hit a record high this year.
Although in-store traffic declined 9% compared with last year’s Black Friday, per RetailNext and Shopper Trak, consumers made up for it by spending aggressively shopping online. This helped lift investors’ sentiments, resulting in a rally in retail stocks.
Tech Stocks Rebound
Tech stocks have been sufferings for a while now, with FAANG stocks at the helm of the carnage. However, on Monday, tech stocks finally rebounded after witnessing huge selloffs last week. FAANG stocks had declined more than 3.6% last week, entering bear territory. The tech-heavy Nasdaq 100 tumbled almost 5% last week giving up more than $1 billion in outflows last week.
Investors are also closely looking forward to the G-20 summit scheduled to take place later this week in Buenos Aires, where President Donald Trump and China’s president Xi Jinping are expected to meet regarding the escalating tariff dispute between the two countries.
Oil Price Help Energy Stocks
Markets suffered last week as oil prices fell, with crude prices plunging 7.7% alone on Friday. However, on Monday energy stocks rallied after crude oil prices posted their biggest percentage jump in five months, driven by plunging U.S. stockpiles and growing supply concerns. This pushed energy shares up 1.7%. On Monday U.S. crude futures traded above $51 a barrel, gaining more than 2%, while Brent crude rose above $60.
PerkinElmer, Inc. PKI recently announced CE-IVD mark for commercialization and distribution of its Vanadis NIPT (non-invasive prenatal testing) system throughout Europe and countries that recognize the marking. ( Read More )
SCANA Corporation SCG announced a settlement with the customers of South Carolina after the plaintiffs sued the company for charging lofty electric rates associated with a failed nuclear development. ( Read More )
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it’s predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.
Go to Appearance > Customize > Subscribe Pop-up to set this up.
Wealth Empire Newsletter
Register now for free updates and alerts
Note: I have the ability to revoke this permission at any time and ask for the removal of my personal data collected by contacting us or simply clicking Unsubscribe.