Dow Spikes More Than 550 Points To Best Closing Level In A Month
(RTTNews) - Following the sharp pullback seen in afternoon trading on Monday, stocks showed a significant move back to the upside during trading on Tuesday. The Dow showed a particularly strong upward move, reaching its best closing level in a month.
The Dow soared 556.79 points or 2.1 percent to 26,642.59 and the S&P 500 surged up 42.30 points or 1.3 percent to 3,197.53, which was also a one-month high.
The tech-heavy Nasdaq lagged behind for much of the session but eventually joined its counterparts in positive territory, closing up 97.73 points or 0.9 percent at 10,488.58.
The spike by the Dow was partly attributed to traders transitioning out of big-name tech stocks and into more cyclical stocks like Caterpillar (CAT), which led the blue chip index higher with a 4.8 percent jump.
Strong gains by energy giants Chevron (CVX) and Exxon Mobil (XOM) also contributed to the advance by the Dow, reflecting strength in the broader energy sector.
The Philadelphia Oil Service Index skyrocketed by 5.2 percent, the NYSE Arca Oil Index rallied by 3.5 percent and the NYSE Arca Natural Gas Index spiked by 3.4 percent.
The strength among energy stocks came amid a modest increase by the price of crude oil, with crude for August delivery inching up $0.19 to $40.29 a barrel.
Gold stocks also moved sharply higher over the course of the session, driving the NYSE Arca Gold Bugs Index up by 4.3 percent even though the price of gold for August delivery edged down $0.70 to $1,813.40 an ounce.
Substantial strength was also visible among housing stocks, as reflected by the 3.7 percent jump by the Philadelphia Housing Sector Index. The index ended the session at its best closing level in over a month.
Steel, chemical, and biotechnology stocks also saw considerable strength on the day, moving higher along with most of the other major sectors.
Meanwhile, banking stocks were among the few groups to buck the uptrend, dragging the KBW Bank Index down by 1.6 percent.
Shares of Wells Fargo (WFC) came under pressure after the banking giant reported a wider than expected second quarter loss and slashed its dividend.
Citigroup (C) also posted a steep loss after reporting second quarter earnings that fell sharply year-over-year but still exceeded analyst estimates. Revenues also came in above expectations.
On the other hand, shares of JPMorgan Chase (JPM) moved to the upside after the financial giant reported second quarter results that exceeded analyst estimates on both the top and bottom lines, benefiting from a spike in trading revenue.
In overseas trading, most stock markets across the Asia-Pacific region moved to the downside during trading on Tuesday. Japan's Nikkei 225 Index slid by 0.9 percent, while China's Shanghai Composite Index fell by 0.8 percent.
European stocks also moved mostly lower on the day, although the U.K.'s FTSE 100 Index bucked the downtrend and inched up by 0.1 percent. The German DAX Index slumped by 0.8 percent, while the French CAC 40 Index tumbled by 1 percent.
In the bond, treasuries moved higher after ending the previous session little changed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.5 basis points to 0.615 percent.
Reports on industrial production, import and export prices, and New York manufacturing activity may attract some attention on Wednesday.
On the earnings front, Goldman Sachs (GS), BNY Mellon (BK), Progressive (PGR), U.S. Bancorp (USB) and UnitedHealth (UNH) are among the companies due to report their quarterly results before the start of trading.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.