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S&P 500 and Dow Jones close at new highs as traders push negativity aside

It was a mixed finish on Friday for US shares , so what will happen this week?
S&P 500 and Dow Jones close at new highs as traders push negativity aside
Wall Street shares powered higher on Monday
  • Dow Jones and S&P 500 close at new records

  • UK's Brexit talks start in Brussels.

  • US tech stocks provide boon for benchmarks

  • Fed's new hawkish tone continues

 

As was seemingly on the script all day, The Dow Jones and S&P 500 closed at new record highs on Monday as tech shares and banks surged.

The Dow finished a whopping 144 points up at 21,528, while the broader S&P 500 closed over 20 higher at 2,453.

It comes as traders buy into the earlier sold -off tech stocks and are buoyed by sentiment surrounding Macron's electionw in France and the Fed's interest rate move last week, which underscored optimism about the economy.

The UK' Brexit negotiations have seemingly for now,  been pushed to one side.

Apple (NASDAQ:APPL),  the planet's most valuable publicly traded company, added another 2.86% to $146.34. Potential retail world dominator Amazon (NASDAQ:AMZN) added 0.76% to $995.17.

In Toronto, the TSX/S&P composite index closed 73 higher at 15,266, while US crude continues to be under pressure, down 1.39% to $44.12 a barrel as OPEC's aims to prop up the market look further away than ever.

 

MID-SESSION

US shares were powering ahead at mid-session as tech stocks bounced and banks did well.

The Dow Jones is 119 higher at 21,503, while the S&P500 is up 17.76 to 2,450. The tech heavy Nasdaq is up 84 at 6,236, while the US dollar firmed after hawkish comments from Fed member William Dudley.

He said halting the monetary tightening now (interest rate rises) would endanger the US economy.

It comes as the UK saw an absolute landmark day - in that the negotiation process to withdraw from the EU has kicked off.

On the Dow Jones, the biggest riser was Apple (NASDAQ:AAPL) up 2.92% to $146.42, while Goldman Sachs (NYSE:GS.) rose 2.15% to $226.58.

On the downside, ExxonMobil (NYSE:XOM) slid 0.69% to $82.91 as the price of US crude fell 0.65% to $44.45 a barrel.

Crude has now fallen four weeks in a row as US drillers continue to add rigs, hampering OPEC's efforts to rebalance the market.

Elsewhere, Novadaq Technologies Inc (NADAQ: NVDQ) surged over 95% to $11.73 after it agreed to be bought by Stryker Corporation.

Clovis Oncology Inc (NASDAQ: CLVS) climbed 47%  $88.5 after the company released encouraging  data from an ongoing trial called ARIEL3. The  trial for advanced ovarian cancer treatment rucaparib passed its final stage trial.

A treatment for women with platinum-sensitive ovarian cancer, rucaparib demonstrated improved progression free survival in all three indications while it also improved PFS in a blind independent review, which was the secondary endpoint.

Chardan Capital upgraded Clovis Oncology from  'neutral' from 'sell'.

Meanwhile, Rice Energy Inc (NYSE:RICE)  saw shares jump over 25% to $24.65 in New York trading after the US shale gas group agreed to around a US$6.07bn takeover bid from rival EQT Corp (NYSE:EQT).

On the losing front, Performant Financial Corp (NYSE:PFMT) lost over 30% to $1.75 after the firm reported the termination of student loan recovery contract with its main customer -  Great Lakes Higher Education Guaranty Corp.

Celsion Corporation (NASDAQ: CLSN) lost 25% to $2.38  after the company announced plans to sell 2mln shares of stock or pre-funded warrants at price of $2.75 per share.

 

 

12pm - UK stocks end higher as Brexit nogotations start

FTSE 100 ended Monday 63 points higher at 7,527 as the first day of Brexit negotiations got underway and US stocks soared.

That was on the back of the tech rebound as traders bought into the shares, which have been heavily sold off in recent days.

The Dow Jones is up 106 at the time of writing to a new record high, as is the S&P 500, which gained over  16 points.

10am .US shares open higher

The Dow Jones Industrial Average has reached a record high, rising 70 points to 21,454 on the back of a rally in tech shares, and as global equities move higher.

The Nasdaq and the S&P 500 are also higher, up 58 points to 6,210 and 11 points to 2,444, respectively.

In London, FTSE 100 is up over 53 at the time  of writing, while European equities are also higher.

US crude is up 0.22% to $44.85, while the TSX Index in Toronto is up over 73 points at 15,265.

In stocks, on the Nasdaq, the biggest loser was retailer Costco Wholesale (NASDAQ:COST), down 2.26% to $163.33. Also lower was Barbie doll maker Mattel (NASDAQ:MAT), down 1.25$ to stand at $20.46.

Amazon led technology stocks higher with its shares increasing 1.33% to US$1,000.96 following last week’s announcement that it had agreed to buy Whole Foods. Apple jumped 1.57% to US$144.55 each.

The pound has reversed earlier gains against the dollar, falling 0.16% to US$1.2763.

The greenback was strengthened by comments from New York Federal Reserve President William Dudley who suggested the central bank remains on track to raise US interest rates further.

Dudley welcomed the Fed’s recent rate increases, adding that he expects wage growth to accelerate and the labour market to tighten.

The Fed last week raised interest rates by 25 basis points following an improvement in the labour market.

PREVIEW

US shares are poised to head north on Monday after a mixed close last week as big global geopolitical issues are still at the fore.

The consumer staples sector got a pasting at the tail-end of last week, dominated as it is by food retailers, after the internet titamn Amazon.com Inc (NASDAQ:AMZN) surprised the world by launching a US$13.7bn takeover of Whole Foods Market Inc (NASDAQ:WFM). In pre-market today, Amazon shares are up 0.85% to $987.71 each.

The Dow Jones 30-share index closed 24 points higher at a record closing level of 21,384 but the Nasdaq Composite gave up 14 points at 6,152; the benchmark S&P 500 added just over half a point at 2,433.

Today, Dow Jones futures are 71 points ahead, the S&P 500 is up 7.25, while the tech heavy Nasdaq is trading 38.5 poinst higher.

In London, FTSE 100 is up 41 points at the time or writing, while European indices are also  higher.

After what seems like an eternity, Brexit negotiations have finally started in Brussels today. This is the process to debate how the UK will withdraw from the EU but the playing field still appears wide open - with it not clear to what extent the country will leave the  customs union or not and similar issues.

It has all left many in the business world uncertain and indecisive about decisions until these issues are tidied up.

In other news, President Trump's technology council, an advisory body, is set to meet for the first time on Monday, with notable absentees - Uber and Tesla as their chief executives refused to sit on the council due to the president's recent decisions.

Meanwhile, aircraft maker Lockheed Martin Corp (NYSE: LMT) has revealed it is nearing a deal to sell 440 of its F-35 fighter jets to 11 nations, including the US. Shares are up 0.49% in pre-market.

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