Monday, September 28, 2020  

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Stocks on Wall Street Rise Monday      09/28 08:55

   U.S. stocks are rallying in early Monday trading, as Wall Street claws back 
some of its sharp and sudden September losses.

   NEW YORK (AP) -- U.S. stocks are rallying in early Monday trading, as Wall 
Street claws back some of its sharp and sudden September losses.

   The S&P 500 was 1.4% higher after the first 10 minutes of trading, following 
up on its first four-week losing streak in more than a year. Momentum has been 
ultra-quick to shift recently, though, with stocks veering in several 
directions through the day. The market has had several early gains quickly 

   The Dow Jones Industrial Average was up 402 points, or 1.5%, at 27,576, as 
of 9:40 a.m. Eastern time, and the Nasdaq composite was 1.6% higher.

   One of the big worries hurting stocks this month has been fears that the 
market climbed too high and got too expensive through its powerful summer 
rally. But several companies announced big mergers and acquisitions, which show 
that at least some CEOs see value at current prices.

   Devon Energy rose 3% and WPX Energy climbed 4.7% after they agreed to 
combine in an all-stock deal.

   Cleveland-Cliffs jumped 8.9% after it said it will buy the U.S. business of 
steelmaking and mining giant ArcelorMittal for $1.4 billion. ArcelorMittal's 
U.S.-listed stock rose 9.4%.

   Another big gainer was Uber, which rose 4.2% after it won an appeal that 
will allow it to keep operating in London.

   The market's gains were widespread, with nearly all the stocks in the S&P 
500 higher. Big Tech stocks, which have been getting the most criticism for 
getting too expensive following their strong pandemic run, were also higher.

   Apple rose 1.5%, Microsoft gained 1.8% and Amazon rose 1.6%. These companies 
are massive, which gives their stock movements much more sway over the S&P 500 
and broad-market indexes than other stocks.

   Monday morning's rebound for stocks trims September's loss for the S&P 500 
to 4.6%. Several factors have been behind the abrupt drop, which halted what 
had been a remarkable rise on Wall Street that began in late March.

   Many of those factors are still in place, which means analysts along Wall 
Street say the tumultuous trading may not be over.

   Investors are still waiting for Congress to deliver another round of support 
for the economy after extra unemployment benefits for workers and other 
stimulus expired. Tensions are still rising between the United States and 
China. And the upcoming U.S. presidential election still means plenty of 
uncertainty for investors, from what it could do to corporate tax rates to how 
long markets will need to wait until after Election Day to discover the winner.

   Countering those uncertainties, though, is the tremendous support that the 
Federal Reserve is continuing to provide markets and the economy. So are 
investors' rising hopes that a vaccine for COVID-19 could become available as 
soon as early 2021.

   European stock markets rallied strongly, with the Germany DAX returning 2.9% 
and the French CAC 40 rising 2.2%. The FTSE 100 in London added 1.7%.

   In Asia, Japan's Nikkei 225 rose 1.3%, as did South Korea's Kospi. The Hang 
Seng in Hong rose 1%, and stocks in Shanghai slipped 0.1% after China's 
statistical bureau reported that industrial profits rose 19% in August from a 
year earlier, as the economy recovered from the pandemic downturn.

   The yield on the 10-year Treasury dipped to 0.65% from 0.66%.

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