Stocks Advance On Monday Ahead Of Earnings Season

Michael Teague |

Stocks extended their rally into Monday trading with across-the-board gains ahead of the flood of second quarter earnings reports releases that were set to begin with Aluminum manufacturer Alcoa’s (AA) shortly after the closing bell.

The Standard & Poor’s 500 was back within reach of its all-time high, up 0.53 percent to close at 1,640.46 points, while the Dow Jones Industrial Average was up 0.59 percent to 15,224.69 points, and the NASDAQ rose 0.16 percent to end the day at 3,484.83 points.

The day’s only economic data point came in the form of Federal Reserve figures showing that outstanding consumer credit rose to $2.84 trillion in the month of May, up $19.6 billion, a significant increase on the expected $12.5 billion figure and an indication for some analysts that consumers and households have felt confident enough to assume more credit.



Otherwise, the week should become progressively dominated by earnings reports, in conjunction with the release of the minutes from June’s Federal Open Market Committee meeting and the following press conference from Chairman Ben Bernanke. These events will, of course, be closely watched by investors for indications about when and at what pace the central bank will begin to pull back on $85 billion a month in bond purchases.

After a press conference from June 19 during which Bernanke suggested that tapering could begin as soon as September, markets went haywire for several days before settling into the upward trend of the past week.

Basic materials stocks had a good day on the S&P 500, with Peabody Energy (BTU) leading the way up on an advance of almost 5 percent, followed by CONSOL Energy Inc. (CNX), up just shy of 4 percent, with Phillips 66 (PSX) and Tesoro Corporation (TSO) in tow.

Meanwhile tech stocks had a rough day, with Intel (INTC) and SanDisk Corp. (SNDK) respectively at the bottom of the pile.

Most of the Dow’s components ended the day in the positive, with Uniteadhealth Group (UNTC) and Wal-Mart (WMT) in the lead, while the NASDAQ saw Dell Inc. (DELL) up over 3 percent on news that Institutional Shareholder Services issues a recommendation to the company’s shareholders advising them to accept founder and CEO Michael Dell’s bid to take the company private.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
WMT Wal-Mart Stores Inc. 67.13 -0.84 -1.24 10,012,519
AA Alcoa Inc. 33.01 -0.03 -0.09 3,026,712
INTC Intel Corporation 36.79 0.08 0.22 15,072,235
TSO Tesoro Corporation 79.61 -1.07 -1.33 2,448,180
SNDK SanDisk Corp. n/a n/a n/a 0
PSX Phillips 66 83.29 -1.05 -1.25 2,242,898
BTU Peabody Energy Corp n/a n/a n/a 0
CNX CONSOL Energy Inc. 18.64 0.19 1.03 1,716,782
ALLRF Allana Potash Corp n/a n/a n/a 0

Comments

Emerging Growth

Sack Lunch Productions Inc

Sack Lunch Productions Inc is an entertainment company. The Company, through its subsidiaries, is engaged in event management, production service, film production and distribution services.

Private Markets

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…