Energy and material stocks led a late day rally in the US Market today, Tuesday, 06 November, 2007 and stocks ended considerably higher for the day after a volatile day of trading. Crude prices crossing the $97/barrel mark and anticipation that it will touch the $100 mark soon fuelled the energy stocks. All ten economic sectors ended in green today. Traders set aside sub prime worries for a change.
After being down by almost 25 points earlier in the day, The Dow Jones industrial Average ended with a triple digit gain and closed higher by 117 points at 13,661. The Nasdaq Composite Index, finished higher by 30 points at 2,825. S&P; 500 finished higher by 18 points at 1,520.
Twenty-three out of thirty Dow stocks ended in green headed mainly by Exxon Mobil shares. The stock was up more than 3% today. The financial sector also made a rebound today. But Citigroup shares continued to be under pressure.
Technology also led a good rally today. Cisco was a headliner as investors were feeling optimistic ahead of its earnings report on Wednesday. Other stocks included Google, Apple, Intel and Oracle. Oracle was added to the Americas Conviction Buy List at Goldman Sachs and in contrast, Goldman Sachs removed Microsoft from the same list. Microsoft provided some relative weakness.
Commodities, had a very strong day today as the dollar continues to weaken. The dollar has hit an all-time low against the euro. Gold was up 2.1% to $825.80, hit a 28-year high.
Supply concerns, tumbling dollar and storm forecasts sent crude prices to a new all time high today, 6 November, 2007 as crude crossed the $97/barrel mark. Crude oil futures for light sweet crude for December delivery closed at $96.67/barrel (higher by $2.69/barrel or 2.9%) on the New York Mercantile Exchange. Prices rose to $97.1/barrel during intra day trading. Oil prices rose 16% in October, 2007, the biggest one-month gain since September 2004.
As per reports, a storm forecast forced BP and ConocoPhillips to evacuate workers and cut production. Conoco and BP said they have started evacuating workers from some facilities before the weather worsens. It was also reported today that an oil pipeline in north-central Yemen was blown up by tribesmen.
Regarding tomorrows weekly inventory report by the Energy Department, crude inventories are expected to show a third weekly consecutive drop.
Volume on the New York Stock Exchange hit nearly 1.5 billion shares, with advancing stocks ahead of decliners almost 2 to 1. On the Nasdaq, 2.5 billion shares exchanged hands, and advancing stocks outpaced declining issues 4 to 3.
A number of economic reports are expected tomorrow, the major among them being the Productivity report and the Consumer Credit report. The Productivity report measures the growth of labor efficiency, which is a factor underpinning the rate at which the economy can grow without feeding inflation. Consumer credit provides insight into the status of consumer finances. Other than these, several Fed officials are scheduled to speak tomorrow.
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