Buoyed by gains in the oil market and support for the Dow Jones Industrial Average at its 100-day moving average, Wall Street's major benchmarks reversed early losses associated with lingering trade war jitters and climbed into positive territory. All eleven sectors of the S&P 500 are higher while Dow advancers outpace decliners by nearly 10-to-1, pulling the blue chip index up by more than 200 points at midday on Monday.
Wall Street was limping into Monday's open lower for a fifth straight day with investor confidence undermined by election results in Italy and risks of a U.S. trade war. Sunday's Italian election resulted in the Eurosceptic, anti-establishment Five Star Movement taking a third of the vote but not enough for a majority, and with more than 50% of the vote going to populist parties including the xenophobic League.
The results drove the Borsa Italia lower while leaving the rest of Europe's bourses unscathed. At the close, Italian stocks were off their session lows, while Germany's DAX was supported by the formation of a coalition government between Chancellor Angela Merkel's Christian Democrats and the Social Democrats, securing a fourth term for Merkel.
Economic data had little lasting impact on the markets. The February purchasing manager's services sector index rose to 55.9 from January's 53.3, while the corresponding index from the Institute for Supply Management fell slightly from January's 59.9 to 59.5, but beat expectations for a 58.8 print.
Stocks moved off their worst levels mid-morning as President Trump said Canada and Mexico could win exclusions from steel and aluminium tariffs, easing some of the trade pressures that have plagued Wall Street for three days. Additionally, the Dow bounced off support at its 100-day moving average and oil futures surged more than 2% on supply disruptions in Libya.
Crude oil was up $1.42 to $62.67 per barrel. Natural gas was up $0.02 to $2.71 per 1 million BTU. Gold was down $2.10 to $1,321.30 an ounce, while silver was down $0.04 to $16.43 an ounce. Copper was up $0.001 to $3.13 per pound.
Among energy ETFs, the United States Oil Fund was up 1.71% to $12.58 with the United States Natural Gas Fund was unchanged at $22.58. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 0.09% to 21.52 while SPDR Gold Shares were down 0.14% to $125.21. The iShares Silver Trust was down 0.58% to $15.47.
Here's where the markets stand at mid-day:
NYSE Composite Index was up 82.73 points (+0.65%) to 12,639.13
Dow Jones Industrial Index was up 206.14 points (+0.84%) to 24,744.20
S&P 500 was up 19.36 points (+0.71%) to 2,710.47
Nasdaq Composite Index was up 65.23 points (+0.88%) to 7,321.95
FTSE 100 was up 46.08 points (+0.65%) to 7,115.98
DAX was up 177.16 points (+1.49%) to 12,090.87
CAC 40 was up 30.65 points (+0.60%) to 5,167.23
Nikkei 225 was down 139.55 points (+0.66%) to 21,042.09
Hang Seng Index was down 697.06 points (-2.28%) to 29,886.39
Shanghai China Composite Index was up 3.00 points (+0.09%) to 3,257.53
NYSE SECTOR INDICES
NYSE Energy Sector Index was up 94.77 points (+0.89%) to 10,739.20
NYSE Financial Sector Index was up 61.61 points (+0.76%) to 8,219.53
NYSE Healthcare Sector Index was up 87.81 points (+0.68%) to 14,364.13
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