Monday morning buyers start August off with a bang as all 30 Dow stocks higher the market continues to climb the wall of worry. Summer is always fits and starts as markets seemingly are rudderless. But it shows you that it’s always best to follow age old market sayings, and the one I recall is “Never short a quiet market” , and Friday was about as listless as a market could be.
Also, the US is about as hot as it can be in nearly every city and investors lose focus and you have nothing but Pro Traders swapping shares and flipping outlier positions between long and short. I can tell you that you will have ETF’s dragging the market up as those who bet the wrong way hedge up and continue to climb the Wall of Worry!!!
(Reuters) – Stocks rallied on Monday as strong earnings results and better-than-expected manufacturing data prompted investors to build on last month’s run-up.
Indexes jumped more than 1 percent across the board after closing out July with the best monthly gain in a year, bouncing back from a sell-off through May and June.
Energy shares led the S&P 500 higher as oil prices rose above $81 a barrel for the first time since early May on a bullish outlook for energy demand.
Strong results in Europe from big banks BNP Paribas SA (Paris:BNPP.PA – News) and HSBC Plc (LSE:HSBA.L – News; NYSE:HBC – News) set the positive tone early and buoyed U.S. bank stocks. Citigroup Inc (NYSE:C – News) was up 2.2 percent at $4.19, and JPMorgan Chase & Co (NYSE:JPM – News) added 1.7 percent to $40.97.
Indexes climbed to session highs after the Institute for Supply Management said the U.S. manufacturing sector grew in July for the 12th straight month, while the government reported construction spending unexpectedly rose in June.
“What we’ve seen over the last few weeks has been decent earnings, but economic data has been on the weak side. But today we had good earnings out of Europe, and we actually had strong economic data, and that is piling on to a decent start to the month,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati, Ohio.
The Dow Jones industrial average (DJI:^DJI – News) gained 171.28 points, or 1.64 percent, to 10,637.22. The Standard & Poor’s 500 Index (^SPX – News) jumped 19.73 points, or 1.79 percent, to 1,121.33. The Nasdaq Composite Index (Nasdaq:^IXIC – News) climbed 39.15 points, or 1.74 percent, to 2,293.85.
BP Plc (LSE:BP.L – News; NYSE:BP – News) also lifted the energy sector as the British oil major prepared to plug its blown-out Gulf of Mexico well for good. Its U.S.-listed shares rose 2 percent to $39.26, while the PHLX oilfield services index (Philadelphia:^OSX – News) jumped 4 percent.
The S&P 500 regained its 200-day moving average of 1,114.51, a level that has provided resistance recently. A decisive break above that level would provide a bullish signal.
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