The U.S. stock market continued to rebound on Monday with the
S&P 500 closing around 10 points below a previous resistance
level in the 1,650 area.
The Dow led the major averages on the session, while the
Nasdaq only recorded a small gain. Consumer staples and utilities
led the modest rally while technology was a laggard and finished
in the red on the day.
Treasury prices rebounded after experiencing big losses on
Friday and the U.S. Dollar retraced some of its recent gains. In
economic news, consumer credit saw a big jump for May, exceeding
consensus expectations by a wide margin.
The Dow Jones Industrial Average rose 89 points, or 0.59
percent, to close at 15,225.
The S&P 500 rose almost 9 points, or 0.53 percent, to
The Nasdaq added a little more than 5 points, or 0.16 percent,
to close at 3,485.
Consumer credit rose by $19.6 billion in May after increasing
just $10.9 billion in April. This represented the largest
increase in credit since May 2012 and compared to consensus
estimates calling for consumer credit to rise $13.2 billion.
Crude oil prices were slightly lower to start the trading week
on Monday. At last check, NYMEX crude futures were down 0.18
percent to $103.03. Brent crude futures were lower by 0.43
percent to $107.26. Natural gas was last trading up 3.15 percent
on the day to $3.73.
Precious metals rose to start the trading week. At last check,
COMEX gold futures were up almost 2 percent to $1,235.50. Silver
contracts were higher by 1.76 percent to $19.07.
In the grains complex, corn and wheat climbed on the session.
Corn futures were last up 1.88 percent while wheat added 0.45
percent. Movers in soft commodities included coffee and lumber.
Coffee futures rose 1.81 percent while lumber traded down 2.26
Bond prices rose on Monday after plunging last Friday. At last
check, the iShares Barclays 20+ Year Treasury Bond ETF (NYSE:
) was up 1.14 percent to $107.48. Yields fell as prices rose on
Yields on Treasuries were as follows to start the week. The
2-Year Note was yielding 0.36 percent while the 5-Year Note yield
was 1.50 percent. The 10-Year Note yield was 2.64 percent while
the 30-Year Bond yield was sitting at 3.64 percent.
The U.S. Dollar was lower on Monday. Near the close of
equities, the PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was down 0.33 percent to $22.83.
The closely watched EUR/USD pair was last trading up 0.34
percent to $1.2875. The only other significant mover on the day
in the currency market was the AUD/USD, which rose 0.85
Volatility and Volume
Late on Monday, the VIX was unchanged at 14.89. In recent
weeks, the widely watched measure of volatility expectations has
been falling amid a rally in stocks.
Volume was very light on the session. Around 88 million SPDR
S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 144
Linn Energy LLC (NASDAQ:
) rose better than 8 percent on the session after analysts at
Bank of America upgraded the stock to Buy. Shares had been
falling in recent days in the wake of an informal SEC
Shares of the Jones Group (NYSE:
) spiked around 7 percent in intra-day trading on Monday after
reports surfaced that the company had hired Citigroup to explore
a possible sale.
) was trading up around 8 percent late on Monday. The reason for
the move in the shares was not immediately apparent.
) had climbed around 7 percent late on Monday after JMP
Securities launched coverage on the stock with an Outperform
) climbed almost 4 percent on Monday after Morgan Stanley
upgraded the stock to Overweight.
Noodles & Co. (NASDAQ:
) fell around 9 percent late on Monday. The stock rose sharply
after going public on July 1.
Celldex Therapeutics (NASDAQ:
) fell around 8 percent on profit-taking on Monday. The stock
rose sharply last Friday.
) fell almost 4 percent on Monday after Evercore downgraded the
stock to Underperform and cut its price target to $20. Both
Evercore and Citi also cut forecasts through 2014.
Natus Medical (NASDAQ:
) cut its second-quarter guidance on an unexpected decline in
international revenue. The stock lost around 13 percent in the
wake of the news.
ClickSoftware Technologies (NASDAQ:
) lost 10 percent after the company said that second-quarter
growth will be lower than previously expected.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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