Current Futures: Dow +62.00, S&P +9.40, NASDAQ +14.75
The global recovery theme continues in the equity market, helping the S&P 500 index reach the 1,000 psychological level.
After a very strong overnight session, in which the S&P futures surged almost 1% from the positive momentum coming from the Asian and the European financial system, the U.S. equity market reached new yearly highs during the cash session. Most of the gains came from the financial and basic materials sectors during the U.S. trading hours, extending the trend seen over the last few days of trading. Moreover, each of the 10 major industries represented in the U.S. markets advanced on Monday, TheLFB-Forex.com Trade Team noted.
The market’s uptrend started only after HSBC, Europe’s biggest bank, beat market expectations by a large margin, and after rumors started to surface that UBS avoided a fine from a tax issue. These two news reports gave the overnight markets a strong boost, including the major European indexes and the S&P futures. Throughout the U.S. trading hours, a report showed that the manufacturing side of the U.S. economy decreased at the slowest pace in more than a year in July, something that further shows that the economy is contracting at a slower speed.
With July’s release, the ISM Manufacturing report beat analysts’ projection for the seven month in a row.
In the Treasury market, longer term Treasuries were sold as investors look for higher yields. Yield on the 10-year note declined 1.46 basis points to 3.633%.
The Dow Jones Index advanced 97.72 points (1.07%) to 9,269.33, while the S&P 500 index gained 12.96 points (1.31%) to 1,000.44.
Crude oil for August delivery was recently trading at $71.50 per barrel, higher by $2.00.
Gold for August delivery was recently trading higher by $2.60 to $958.50.
Disclosure: No positions