Wall Street experienced a sharp bullish move as soon as the markets opened on Monday, where the S&P 500 index opened with a huge gap after which it tested its all-time high of the 1710 level. This is the same level that it tested a few weeks back, but couldn’t sustain above it and is currently trading at the 1698 level just at the start of the Asian session on Tuesday.
This upward gap was witnessed not only in the stock market index but also in major currencies as the one of the contenders for Fed Chairman – Lawrence Summers – announced that he is withdrawing his nomination for the race of becoming the Fed chairman after Ben Bernanke. Moreover, the tensions hovering over the Syrian crisis also eased where no strike is being expected against Syria any time soon.
This move may also be a speculative manipulation by the traders where they may be preparing to start shorting the market as the tapering of QE is expected in the FOMC meeting due this Wednesday. Therefore, a good selling price would be enjoyed for the sellers as they may have hunted the stop losses of short-term traders.
Boeing Gains on Endorsement
The shares of the aircraft-maker – Boeing – gained around 3.8% to reach the level of $115.5 a share level that is the biggest rise in the Dow, as an analyst from Sterne Agee pointed out that the Boeing shares are a ‘must-own stock’ these days among big industrials. Moreover, he hinted that the price of Boeing shares may rise further and go on to test $164 after it sustains above the $120 resistance level.
Finance and Housing Stocks Rallies
The shares of Wells Fargo & Co. experienced a 1.8% rise in the share price after which the stock is currently trading at $42.95 level, as the 81 members of the S&P index advanced. In the housing sector, D.R. Horton surged around 4.3% on Monday and is now trading just below its previous resistance level of $20 a share.
To contact the reporter of this story: Jonathan Millet at email@example.com