Investors slowed their hectic buying of stocks Monday, leaving the major indexes little changed after a four-day advance.The day started strong but finished weak. An early-afternoon pullback left the Dow Jones Industrial Average (DJIA) at the breakeven line and the rest of the session was a lackluster drift sideways. The S&P 500 (SPX) and Nasdaq Composite (COMP) joined the Dow with a flat close.
Today's Markets
The Dow Jones Industrial Average rose 3.32 points, or 0.03%, to 9509.28, the Standard & Poor's 500 lost 0.56 points, or 0.05%, to 1025.57 and the Nasdaq Composite lost 2.92 points, or 0.14%, to 2017.98.
While the Dow's win streak continued on Monday, the gains were miniscule compared to the 370 points added over the prior four days and the S&P 500 and Nasdaq Composite closed with slight losses.
Stocks closed well off their best levels as a financials-led rally ran crumbled Monday afternoon amid banking analyst Dick Bove's warning of another 200 bank failures and SunTrust Bank (STI: 21.78, -0.85, -3.76%) CEO James Wells II's pessimism about the credit cycle.
“I suspect if you step back you could probably make a much better case for the market going down than for the market going up,” NSYE trader Ted Weisberg of Seaport Securities told FOX Business. "I think the market is way overbought and due for a correction."
More than half of the Dow's 30 components lost ground, led by Home Depot (HD: 27.04, -0.47, -1.71%) and Coca-Cola (KO: 49.06, -0.83, -1.66%). On the other hand, Boeing (BA: 47.17, 1.29, 2.81%) and ExxonMobil (XOM: 71.31, 1.44, 2.06%) posted the index's biggest percentage gains.
The back-and-forth day on Wall Street comes after the largest one-month jump in existing home sales in more than a decade sent the Dow soaring 156 points on Friday. The benchmark index has closed up in five of the past six weeks, climbing nearly 17% over that span.
Wall Street's gains were limited as financial stocks came under pressure amid the comments from Wells. “This credit cycle has yet to play itself out. We do not expect things to improve for the banking industry in the very near future,” Wells said, according to Bloomberg News.
Global Markets
European markets closed at new 2009 highs. The U.K.'s FTSE 100 rose 0.93% to 4896.23, Germany's DAX gained 1.04% to 5519.75 and France's CAC 40 climbed 1.01% to 3652.17.
Asian stocks rallied even further overnight as Japan's Nikkei 225 soared 3.35% to 10581.05 and Hong Kong's Hang Seng jumped 1.67% to 20535.94.
The Dow Jones Industrial Average rose 3.32 points, or 0.03%, to 9509.28, the Standard & Poor's 500 lost 0.56 points, or 0.05%, to 1025.57 and the Nasdaq Composite lost 2.92 points, or 0.14%, to 2017.98.
While the Dow's win streak continued on Monday, the gains were miniscule compared to the 370 points added over the prior four days and the S&P 500 and Nasdaq Composite closed with slight losses.Stocks closed well off their best levels as a financials-led rally ran crumbled Monday afternoon amid banking analyst Dick Bove's warning of another 200 bank failures and SunTrust Bank (STI: 21.78, -0.85, -3.76%) CEO James Wells II's pessimism about the credit cycle.
“I suspect if you step back you could probably make a much better case for the market going down than for the market going up,” NSYE trader Ted Weisberg of Seaport Securities told FOX Business. "I think the market is way overbought and due for a correction."
More than half of the Dow's 30 components lost ground, led by Home Depot (HD: 27.04, -0.47, -1.71%) and Coca-Cola (KO: 49.06, -0.83, -1.66%). On the other hand, Boeing (BA: 47.17, 1.29, 2.81%) and ExxonMobil (XOM: 71.31, 1.44, 2.06%) posted the index's biggest percentage gains.The back-and-forth day on Wall Street comes after the largest one-month jump in existing home sales in more than a decade sent the Dow soaring 156 points on Friday. The benchmark index has closed up in five of the past six weeks, climbing nearly 17% over that span.
Wall Street's gains were limited as financial stocks came under pressure amid the comments from Wells. “This credit cycle has yet to play itself out. We do not expect things to improve for the banking industry in the very near future,” Wells said, according to Bloomberg News.
Global MarketsEuropean markets closed at new 2009 highs. The U.K.'s FTSE 100 rose 0.93% to 4896.23, Germany's DAX gained 1.04% to 5519.75 and France's CAC 40 climbed 1.01% to 3652.17.
Asian stocks rallied even further overnight as Japan's Nikkei 225 soared 3.35% to 10581.05 and Hong Kong's Hang Seng jumped 1.67% to 20535.94.
Oil nears $75 per barrel on economic optimism.jpg)
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Oil prices approached $75 a barrel Monday for the first time in 10 months amid growing optimism that the world's economies are on the mend.
Benchmark crude for October delivery rose 48 cents to settle at $74.37 a barrel on the New York Mercantile Exchange. Oil last topped $75 in October and on Monday, prices came within 19 cents of that mark.
Benchmark crude for October delivery rose 48 cents to settle at $74.37 a barrel on the New York Mercantile Exchange. Oil last topped $75 in October and on Monday, prices came within 19 cents of that mark.
One factor that might be keeping crude below $75 is the possibility that last week's storage report was an aberration, given that demand for now remains weak. Equity and energy markets have been rising and falling in tandem for weeks and at the start of this week, it was more of the same.
Asian and European markets climbed Monday, and the Dow Jones industrial average rose moderately in afternoon trading. "No doubt about it, we're riding the wave of a strong stock market," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "These bullish financial developments have forced a huge amount of passive capital into commodities, especially the oil space."
It's been slightly more than a year since a barrel of crude soared close to $150 a barrel. No one expects another run to those heights anytime soon, but even the prospect of increasing demand is sure to keep upward pressure on prices.
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