Stocks Rally On Economic Data To Begin September

Michael Teague |

Stocks rallied shortly before the closing bell on Tuesday as Wall Street regained some confidence on better than expected economic data, as well as promises from Secretary of State John Kerry that any US intervention against the Syrian regime would be limited, and not metastasize into a “boots on the ground” level of involvement ahead of a planned congressional vote on the matter.

Two economic data points came in well ahead of expectations to kick off the third trimester of the year. The ISM manufacturing index for August jumped from July’s reading of 55.4 to a reading of 55.7, despite economists’ expectations for the number to drop to 53.9, and marking the highest reading since June of 2011.

Meanwhile the Department of Commerce reported better than hoped for construction spending figures in its report for the month of July. While the expectations had been for an increase 0.4 percent on a month-over-month basis, the actual figure came in at an increase of 0.6 percent, indicating a that the US economy is indeed sticking to its path of slow but steady growth.

The Standard & Poor’s 500 index ended the day 0.42 percent higher to a finish at 1,639.76 points, while the Dow Jones Industrial Average ended at 14,833.96 points, a gain of 0.16 percent, and the NASDAQ was up 0.63 percent to 3,612.61 points.



Tech shares helped to lift the NASDAQ higher, with gains on heavy trading for Facebook (FB) , Micron Technology (MU) (one of 2013’s best performing stocks), Yahoo! (YHOO) , and Himax Technologies (HIMX) .

Techs also lifted up the S&P 500, with big gains for Electronic Arts (EA) and semiconductor manufacturer Xilinx (XLNX) . Basic materials stocks also did well, with Freeport-McMoRan Copper & Gold (FCX) , Pioneer Natural Resources ($PXD), and CONSOL Energy (CNX) all ending the day higher.

Defense contractors United Technologies ($UTX) and Boeing (BA) were at the top of the Dow, along with JPMorgan Chase (JPM) also ending the day higher, on heavy volume, despite recent legal woes. Microsoft (MSFT) was a huge drag on the benchmark index, however, after investors evinced skepticism about the struggling tech company’s early-day announcement that it would be purchasing Nokia’s (NOK) devices and handsets unit, along with patents, for some $7.2 billion dollars. Shares had dropped over 4.5 percent ahead by the closing bell, to $31.88, and on nearly three times of the volume of the next most heavily-traded Dow stock of the day, Bank of America (BAC) . For its part, Nokia ended the day 31 percent higher to $5.12 per share.

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
HIMX Himax Technologies Inc. 7.01 0.14 2.04 2,729,405 Trade
FB Facebook Inc. 150.25 2.55 1.73 30,652,248 Trade
EA Electronic Arts Inc. 94.82 0.58 0.62 1,938,028 Trade
XLNX Xilinx Inc. 63.11 -1.29 -2.00 4,066,270 Trade
JPM JP Morgan Chase 87.00 -0.61 -0.70 10,755,629 Trade
UTX United Technologies Corporation 118.99 0.21 0.18 4,477,800 Trade
BAC Bank of America Corporation 23.34 -0.31 -1.31 69,384,908 Trade
NOK Nokia Corporation Sponsored American Depositary Sh 5.73 0.01 0.17 30,801,494 Trade
FCX Freeport-McMoRan Inc. 12.75 -0.26 -2.00 22,831,017 Trade
CNX CONSOL Energy Inc. 15.18 -0.19 -1.24 5,112,442 Trade
BA Boeing Company (The) 184.83 1.61 0.88 2,181,592 Trade
YHOO Yahoo! Inc. 48.21 -0.15 -0.31 4,925,538 Trade
MU Micron Technology Inc. 27.67 0.04 0.14 28,105,074 Trade
PXD Pioneer Natural Resources Company 172.99 0.63 0.37 1,874,846 Trade
MSFT Microsoft Corporation 68.46 0.19 0.28 39,548,818 Trade
BMKDF BioMark Diagnostics Inc 0.09 0.00 0.00 0

Comments

Emerging Growth

Naked Brand Group Inc

Naked Brand Group Inc through its wholly-owned subsidiary is engaged in manufacturing and selling of direct and wholesale men's undergarments to consumers and retailers.

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…