U.S. market indexes finished higher on Monday to start the week. For the day, the Dow Jones Industrial Average closed at 18636.05 for a gain of 59.58 points, or 0.32%. The S&P 500 was also higher, closing at 2190.15 for a gain of 6.10 points, or 0.28%. The Nasdaq Composite closed higher at 5262.02 for a gain of 29.12 points, or 0.56%. The VIX Volatility Index was higher at 11.81 for a gain of 0.26 points, or 2.25%.
In the Dow Jones Industrial Average, the following stocks led gains for the day:
E.I. du Pont de Nemours & Company (DD, Financial) 1.45%
Goldman Sachs (GS, Financial) 1.41%
Caterpillar (CAT, Financial) 1.39%
United Technologies (UTX, Financial) 0.75%
On Monday, the Empire State Manufacturing Index was negative. The Index, which reports on general business conditions in the New York region's manufacturing sector, was at -4.21, down from 0.55. The Housing Market Index improved to 60, after a previous reading of 59.
Oil prices gained for the day. Oil previously weighed heavily on market activity last week. For Monday, oil prices gained nearly 3%. WTI crude was at $45.68 and Brent crude was at $48.27. Oil prices helped the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite to all reach new highs for the day.
The positive improvement in the Housing Market Index helped housing stocks. D.R. Horton (DHI, Financial) and Lennar Corp. (LEN, Financial) both finished higher for the day. Market valuations also gained from an improved second quarter of corporate earnings and an improving outlook for the third quarter. Second quarter earnings overall fell for the seventh consecutive quarter, however, earnings posted less of a decrease than the first quarter. For the third quarter, a report from Goldman Sachs (GS, Financial) is showing positive corporate earnings per share growth for the first time in two years.
Low fixed income yields have also been fueling the market, as dividend yields attract investors in the current environment. In a CNBC report Monday, market specialists gave their insight on the market’s movement and some of the important factors in the near-term.
Disclosure: I do not own any stocks included in this article.
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