MARKET SNAPSHOT: U.S. Stocks Open Sharply Higher, Paced By Energy
By Donna Kardos Yesalavich
U.S. stocks leaped early Monday, as gains in commodities boosted the energy
and materials sectors, and the dollar fell after a Federal Reserve member said
the U.S. should continue buying mortgage-backed securities past the first
quarter of 2010.
The Dow Jones Industrial Average (DJI) was up 133 points, or 1.3%, to 10,455
in early trading.
Its materials and energy components had the biggest percentage gains, with
Chevron (CVX) up 2.2%, Alcoa (AA) up 2.1% and Exxon Mobil (XOM) climbing 1.4%.
The technology-heavy Nasdaq Composite (RIXF) climbed 1.2%.
The Standard & Poor's 500 (SPX) also rose 1.2%, led by its energy and
materials sectors as crude oil futures climbed above $79 a barrel.
Metals futures rose, with gold moving to $1,165.80 an ounce after reaching a
record of $1,171.
Meanwhile, the dollar fell against both the euro and the yen, helping push the
U.S. Dollar Index (DXY), a measure of the dollar against a basked of six other
currencies, down 0.9% recently. That marks a reversal of the trends from late
last week, when stocks fell as investors shied from riskier parts of the market.
Federal Reserve Bank of St. Louis President James Bullard said Sunday that the
U.S. should continue buying mortgage-backed securities past the first quarter of
2010, when asset purchases are due to end. That helped offset worries from
Friday, when the euro-zone central bank announced its first step in making it
tougher for commercial banks to get loans.
"People are worried about what happens to housing once all the government help
falls away, so [the Bullard comments] are certainly part of the mix giving a
lift this morning," said Bill Stone, chief investment strategist at PNC Wealth
Management.
Noting that existing home sales for October are set to be released at 10 a.m.
Eastern, Stone added that if the numbers meet or surpass expectations, that
would further ease investors' concerns about the housing market.
Among stocks in focus, LDK Solar (LDK) jumped 9.5% after the Chinese maker of
solar wafers and modules posted a surprise profit for the third quarter,
breaking a string of three consecutive quarterly losses.
Tech Data (TECD) climbed 3.5% after the IT products distributor reported its
quarterly profit nearly tripled.
(END) Dow Jones Newswires
11-23-090953ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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