Wednesday, December 6, 2023

US stocks tick up on upbeat data

New York, Nov 3 (IANS) The US stocks posted solid gains on Monday, the first trading day in November, as investors cheered over a batch of positive economic reports.

The Dow Jones Industrial Average added 165.22 points, or 0.94 percent, to 17,828.76. The S&P 500 jumped 24.69 points, or 1.19 percent, to 2,104.05. The Nasdaq Composite Index surged 73.40 points, or 1.45 percent, to 5,127.15 points, Xinhua news agency reported.

The US construction spending during September was estimated at a seasonally adjusted annual rate of $1,094.2 billion, 0.6 percent above the revised August estimate and beating market consensus of a 0.4-percent increase, according to the Commerce Department on Monday.

Financial data firm Markit reported that the final read on October manufacturing Purchasing Managers’ Index (PMI) picked up to a six-month high at 54.1, up from 53.1 in September.

Meanwhile, the Institute for Supply Management said on Monday the October PMI registered 50.1 percent, a decrease of 0.1 percentage point from the September reading of 50.2 percent, but slightly above market expectations.

“Having stabilized around 50 percent, the manufacturing sector is hovering between contraction or recovery. Whether or not we head up or down from here will be dependent on a combination of global growth prospects and Federal Reserve accommodation,” said Jay Morelock, an economist at FTN Financial, in a note.

Meanwhile, traders will look to Friday’s non-farm payrolls reports for hints on the timing of an interest rate hike from the US Federal Reserve.

In corporate news, shares of Visa fell 3.04 percent to 75.22 dollars apiece on Monday, after the company posted lower-than-expected quarterly profit.

On Friday, the US stocks closed lower as investors digested economic data and quarterly earnings reports, but ended October with their best monthly gains in four years.

The CBOE Volatility Index, often referred to as Wall Street’s fear gauge, decreased 6.10 percent to end at 14.15 on Monday.

In other markets, oil prices fell as traders worried that global supplies exceeded the demand.

The West Texas Intermediate for December delivery moved down 45 cents to settle at $46.14 a barrel on the New York Mercantile Exchange, while Brent crude for December delivery decreased 77 cents to close at $48.79 a barrel on the London ICE Futures Exchange.

The US dollar traded mixed against other major currencies as investors were digesting economic data both from the United States and Eurozone.

In late New York trading, the euro rose to $1.1021 from $1.1005 in the previous session, while the US dollar bought 120.75 Japanese yen, higher than 120.71 yen of the previous session.

Gold futures on the COMEX division of the New York Mercantile Exchange fell as technical trading and positive US data weighed on the precious metal.

The most active gold contract for December delivery fell $5.5, or 0.48 percent, to settle at $1,135.90 per ounce.

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