US Stocks Pace Higher after Friday’s Selloff

0
140

US Stocks Pace Higher after Friday’s Selloff

US stocks were moderately higher rebounding from the weekend’s selloff as Wall Street celebrated the sixth anniversary of the bull market without fanfare.

The gain comes after two weeks of straight drops for all major indexes in the US and a session after the S&P 500 faced its greatest decline in two months.

Though still well off last Monday’s highs, all the major indexes all moved to the upside as investors continue to grapple with the possibility of an interest raise in the near future.

The Dow Jones gained 105.90 or 0.6% in early Monday trading at 17,962.68 points while the S&P 500 was up 6.29 points or 0.3% at 2,077.55 points. The tech savvy Nasdaq completed the turnaround to gain 0.88 points or 0.1% at 4928.26 points.

The early strength of Wall Street was partly attributable to a couple of billion-dollar bills and a surge in energy companies supported by a jump in crude oil prices.

Alcoa Inc announced that it would buy RTI International Metals Inc for an estimated $1.5 billion. This announcement helped propel RTI Metals 40.5% to sell at $38.33.

In a separate deal Simon Property Group said it would buy Macerich Co for about $22.4 billion. Simon gained 0.5% to trade at $181.51 while Macerich surged 5.9% to trade at $91.86.

“We’re positive on the stock market here, and the recent setback last week just provides better opportunity to buy,” Tom Mangan, senior vice president at James Investment Research Inc told Reuters.

“You’ll see these kinds of deals continue to be announced since money is so cheap right now that you can borrow all you need to make them happen. This will be very good for small-cap stocks, and it also suggests that the market isn’t overly expensive overall.”

The Wall Street Journal reports that most overseas benchmark stocks were mostly lower as speculation over the Fed Reserve raising the lending rates continued to take toll on markets worldwide.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com