U.S. market indexes were higher on Monday, regaining some ground after last week’s losses. For the day, the Dow Jones Industrial Average closed at 18502.99 for a gain of 107.59 points or 0.58%. The S&P 500 was also higher, closing at 2180.38 for a gain of 11.34 points or 0.52%. The Nasdaq Composite closed higher at 5232.33 for a gain of 13.41 points or 0.26%. The VIX Volatility Index was lower for the day at 13.04 for a loss of -0.61 points or -4.47%.
In the Dow Jones Industrial Average, the following stocks led gains:
Travelers (TRV, Financial) 1.14%
American Express (AXP, Financial) 1.13%
JPMorgan (JPM, Financial) 1.10%
Stocks regained losses from Friday after stocks were lower following a more aggressive outlook on rate increases from the Federal Reserve. Stocks gained further support from a positive Personal Income and Outlays report. Personal income increased 0.4% from the previous month. The Fed’s key indicator for inflation was on target for the Fed’s inflation objective. The PCE Price Index was up 0.8% annually. The PCE Price Index, excluding food and energy, was up 1.6% annually, close to the Fed’s target rate of 2%.
As one of the Fed’s leading indicators for monetary policy, the Personal Income and Outlays report continued to support the Fed’s plans for rate increases. Given the positive report, investors will be watching the labor market report Friday even more closely as its results could now cause two rate increases in 2016.
In a report Monday, CNBC provided additional detail on the July Personal Income and Outlays data.
Disclosure: I do not own any stocks included in this article.
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