Dow briefly negative, gives up 100-point rise; oil eyed

20 Jan 2016 | Author: | No comments yet »

U.S. Stocks Rise After Sharp Selloff.

U.S. stocks advanced on Monday, stabilizing after their deep selloff last week in the wake of the Federal Reserve’s decision to raise interest rates.The Dow Jones Industrial Average DJIA, +0.01% gained 49 points or 0.3% to 17,173 while, the Nasdaq Composite COMP, +0.27% climbed 22 points or 0.5%, to 4,945. “Historically, Santa rally starts about now and continues until the first few days of January.

We are hoping the selling on Thursday and Friday was an aberration and due to massive options expiration,” said Jeffrey Saut, chief investment strategist at Raymond James. BENGALURU: Wall Street started the Christmas holiday week on a positive note, led by tech and financials, but energy stocks lagged as Brent crude hit an 11-year low. US stock indexes are coming off two days of heavy losses as weak crude prices dampened the effect of the first Federal Reserve interest rate hike in nearly a decade. “There looks to be like a little relief bounce this morning as we move into the last two weeks of the year,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey. “It’s a fickle market. All you have to do is look at what we’ve done for the year and whatever you’re going to see today, there’s lower confidence in the direction of any move,” he said.

And with the low volume will come a pickup in volatility, so “Santa maybe just around the corner, but don’t rule out the commodity rout stealing the limelight yet again.” U.S. markets will close early on Christmas Eve and not reopen until Monday, in what will be a full day of trading. Elsewhere, Spain’s IBEX was deep in the red, down 2.5% after the ruling Popular Party failed to win sufficient votes to form a government on its own, a rebuke by voters to unpopular austerity measures.

Berkshire shares were up 1.5% and provided the biggest boost to the financials sector, while Microsoft was the biggest influence to the S&P and the Dow. The rest of the week will be busy, and Wednesday marks the busiest day for data releases, with durable goods orders, and consumer spending and sentiment all coming out at once. Microsoft was up 1.6% at US$54.98 after a Barron’s report on Sunday that the Windows operating system maker’s shares could rise 30% over the next 18 months.

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