Markets

Midday Update: Stocks Rally on Labor Market Gains, Japanese Stimulus Measures & Possible UK Rate Cuts

Wall Street is building on Friday's gains on Monday as investors' appetite for risk was rekindled by evidence that the labor market has rebounded in June. The Labor Department reported last week that the economy added 287,000 new jobs last month, shattering estimates for a gain of 180,000 and restoring confidence in the U.S. economy.

Coupled with new stimulus measures from Japan and easing of tensions surrounding the UK referendum to leave the European Union, demand for equities fueled a new record high in the S&P 500, while Treasury yields have correspondingly risen to their highest levels so far this month.

Overseas markets were all higher with Japan's Nikkei leading gainers as Japanese prime minister Shinzo Abe pledged to launch a massive stimulus package aimed at rebuilding infrastructure through the issuance of construction bonds. In Europe, the selection of a new British prime minister who is seen as well suited to deftly navigate Brexit, along with the possibility for the Bank of England to cut rates Thursday drove European bourses nearly 2% higher.

Among S&P 500 sectors, technology and consumer stocks are outperforming with defensive stocks like telecoms and utilities underwater.

Crude oil was down $0.09 to $45.32 per barrel. Natural gas was down $0.05 to $2.74 per 1 million BTU. Gold was up $1.50 to $1,359.90 an ounce, while silver was up $0.33 to $20.43 an ounce. Copper was up $0.03 to $2.15 per pound.

Among energy ETFs, the United States Oil Fund was unchanged at $10.83 with the United States Natural Gas Fund was down 2.82% to $8.11. Among precious-metal funds, the Market Vectors Gold Miners ETF was up 0.02% to 30.56 while SPDR Gold Shares were down 0.62% to $129.72. The iShares Silver Trust was up 0.73% to $19.36.

Here's where the markets stand at mid-day:

US MARKETS

NYSE Composite Index was up 68.84 points (+0.62%) to 10,637.47

Dow Jones Industrial Index was up 108.82 points (+0.60%) to 18.259.09

S&P 500 was up 9.88 points (+0.50%) to 2,140.52

Nasdaq Composite Index was up 36.81 points (+0.74%) to 4,996.54

GLOBAL SENTIMENT

FTSE 100 was up 92.04 points (+1.40%) to 6,682.68

DAX was up 200.42 points (+2.08%) to 9,830.08

CAC 40 was up 73.23 points (+1.75%) to 4,264.53

Nikkei 225 was up 601.84 points (+3.98%) to 15,708.82

Hang Seng Index was up 316.53 points (+1.54%) to 20,880.50

Shanghai China Composite Index was up 6.82 points (+0.23%) to 2,994.92

NYSE SECTOR INDICES

NYSE Energy Sector Index was up 60.75 points (+0.58%) to 10,703.56

NYSE Financial Sector Index was up 49.86 points (+0.85%) to 5,934.56

NYSE Healthcare Sector Index was up 61.66 points (+0.48%) to 12,970.02

UPSIDE MOVERS

(+) BLFS (77.52%) Signed a 10-year supply agreement with Kite Pharm ( KITE )

(+) SGNT (+39.68%) Nichi-Iko Pharmaceuticals agreed to acquire co. for $736 million

(+) REN (+34.74%) Upgraded by Wunderlich, Johnson Rice and Northland Capital

DOWNSIDE MOVERS

(-) ECTE (-13.97%) Trading on the Nasdaq will be suspended on July 12

(-) DGLY (-9.25%) Profit taking erasing more than half of Friday's gains

(-) TWTR (-2.43%) Downgraded at Suntrust to neutral from buy

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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