US stocks open at the start of the week with a buoyant performance as three major indexes make gains. The Dow was up +0.12%, the S&P 500 advanced +0.16% and the Nasdaq up +0.51% spurred by optimism over global economic growth and a strong earnings seasoning.
From the top:
- Markets moderately up as energy takes a toll
- Oil braces for OPEC decision
- Continued dollar weakness bolsters stocks
Gainers were in basic materials (+0.34%), technology (+0.49%) and telecom (+0.33%) while laggards energy (-0.49%) and financials (-0.07%) dragged on performance. In the first day of trading Brighthouse, the MetLife spin off now holding its core life insurance business and retirement annuities declined -4.41% to $61. Oil stocks followed the price of oil in a downward spiral. Newfield Exploration (-4.99%), Pioneer Natural (-4.21%) and Marathon Oil (-1.60%) also declined.
Camera and accessory maket, GoPro, was up +3.15% while communications and aviation electronics company, Rockwell Collins surged +6.78% on news of takeover by United Tech (-2.44%). Meanwhile, Alibaba climbed +3.59% as it announced a joint venture with Marriott (+1.10%) aimed at Chinese travelling abroad.
- Dow 22,118 +0.12%
- S&P 500 2,480 +0.16%
- Nasdaq 6,383 +0.51%
- Russell 2000 1,413 +0.10%
- NYSE Composite 11,984 +0.14%
- Gold 1,263 -0.13%
- Oil WTI $49 -0.54%
- 10-Year Treasury Yield 2.25% -0.01%
Oil price's downward slide
Oil prices dipped on Monday at the start of the Organisation for Petroleum Exporting Countries' two-day meeting in Abu Dhabi as representatives from producing countries and non-member countries meet to discuss compliance with cutting supplies.
Downward pressure exerted on the price as investors worry over supply concerns. Crude has dropped below $50 a barrel after production lifted in Libya's largest oil field according to Reuters.
Efforts by OPEC to control output in order to ease the glut and to boost the price has largely failed in the face of increased US shale production and increased output from non-member oil-producing countries that previously agreed to cuts.
The dollar weakness is making it a boon for US equities rally. The dollar recovered at the end of last week on a positive US jobs report. The Wall Street Journal reported that investors held around $7.9bn betting on a weaker dollar - the biggest bearish position since early 2013.
The dollar was up against +0.19% against the Euro at $1.17 and 0.05% against the Yen. The currency fell against the pound -0.02% at $1.30 and down -0.23% at $1.10.