Close Update: September Jobs Report Continues to Fuel Stock Market Gains
Stocks rallied on Monday with the Dow Jones Industrial Average gaining more than 300 points as expectations for the Federal Reserve to withhold a rate hike until possibly 2016 offset weakness in the services sector and another sell-off in the biotech sector. All ten sectors of the S&P 500 were in the green with industrials outperforming and putting in their second-best performance this year, followed by sizable gains in the energy and telecommunications stocks.
September's anemic increase in non-farm payrolls continued to fuel gains during the Asian and European trading sessions overnight as global investors saw the below-consensus gain as ammunition for the Federal Reserve to maintain its accommodative monetary policy for the rest of the year. Gains in Europe spilled into early U.S trading with the Dow opening more than 100 points higher.
And even though data on the services industry showed that sector of the economy slowing as well, it failed to stifle today's rally leaving the major indices all sharply higher by midday. The momentum continued into the second half of the day, running out of steam only until the Dow reached the 50-day moving average at 16,790.
Tuesday's economic calendar is very light with only the September balance of trade scheduled for 8:30ET (deficit expected to widen 16%) to $48.6 bln.
Here's where the markets stood at the close:
Dow Jones Industrial Index was up 304.06 points (+1.85%)
S&P 500 was up 35.68 points (+1.83%)
Nasdaq Composite Index was up 73.49 points (+1.56%)
FTSE 100 was up 2.76%
Nikkei 225 was up 1.58%
Hang Seng Index was up 1.62%
Shanghai China Composite Index was closed
(+) CTRV (+123.70%) Disclosed preliminary data on CMX157, the company's lipid prodrug of the successful antiviral drug tenofovir, in the treatment of Hepatitis B.
(+) WG (+30.07%) TRC Companies ( TRR ) buys Willbros' professional services for $130 mln
(+) ONCE (+20.69%) Phase 3 trial of SPK-RPE65 meets primary endpoint
(+) CPH (+13.87%) Reaches settlement with Actavis on Absorica sales
(+) FOLD (+7.20%) Upgraded at Chardan Capital to buy from neutral
(-) SIEN (-21.12%) Brazil regulatory agency suspends manufacturing by
Sientra partner Silimed
(-) VRX (-10.45%) Sunday New York Times article criticized the company's strategy to buy existing drugs and aggressively hike prices to make profits for its shareholders
(-) CMRX (-6.93%) Downgraded at Morgan Stanley to equal weight from overweight, PT cut $6
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