US stocks ended with modest gains on Monday, 12 October, 2009 after the weak dollar pushed the stocks higher for the sixth consecutive day. Higher crude prices also gave the energy sector a good boost. Nevertheless, tech heavy Nasdaq sector failed to finish in the green and ended with minor losses.
The Dow Jones Industrial Average ended higher by 20.86 points at 9,885.8. The Nasdaq Composite Index, ended lower by 0.14 points at 2,139.14. S&P 500 ended higher by 4.7 points at 1076.19.
Eight of the ten economic sectors ended in the green led by energy, financial and utilities sectors. Telecom and industrial sectors were the main laggards.
Strong gains by European markets and renewed weakness in the U.S. dollar helped stocks start the session on strong footing. Early gains were broad-based, but energy stocks were easily the best performers for the entire session.
Financial stocks lagged for most of the session and even dipped into negative territory in the early going. However, the sector was able to regroup and finish at a session high with a gain.
The financial sector was affected on reports that 60% of regional banks will probably post losses this quarter and next quarter. The report also stated that Morgan Stanley and Goldman Sachs should do pretty well, while Wells Fargo will most likely provide a positive surprise.
Shares of Ford was up sharply today following news this morning that the company's European division reported September sales increased 12.3%.
Crude prices rose higher at Nymex on Monday, 12 October, 2009. Future demand hopes in the next couple of years, dropping dollar and rally in equities took crude prices higher today. On Monday, crude-oil futures for light sweet crude for November delivery closed at $73.27/barrel (higher by $1.5 or 2%). During intra day trading, it rose to a high of $73.86. Last week, crude ended higher by 2.8%.
In the currency market on Monday, the dollar firmed up initially after Fed Chairman, Ben Bernanke said last week that the central bank will tighten monetary policy when the economic outlook shows sufficient improvement. But then, with rally in equities, the dollar lost its ground. The dollar index fell by 0.5% today.
Barring Rediff.com, Tata Motors and Infy, all Indian ADRs ended with decent gains. HDFC Bank and Punjab Tractors were were the main gainers climbing 1.9% and 2.9% respectively.
For tomorrow, there is no economic report scheduled. Johnson & Johnson is one of the main earning reports awaited.
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