A strong day of trading bolstered the the major indexes, extending a two-day rally in U.S. equity markets. The S&P 500 gained 3.13 percent to close at 1,060.27, its best result since May. The Dow Jones Industrial Average gained 274.66 points to close at 10,018.30, bringing it back above the psychologically important 10,000 point line.
Oil and copper futures, two key inputs for manufacturing and industry, also posted strong gains.
Widespread perception that the market was oversold and that investors had fled too far, too fast drove stock buying, as did good news about retail sales and potential stress tests in the euro-zone.
The International Council of Shopping Centers said that sales were growing at their highest rate since 2006, which helped assuage concerns that consumers were retrenching and not stimulating economic growth.
Meanwhile, Bloomberg reported that unnamed persons familiar with the situation said that banks in Europe would sustain losses on sovereign debts, but that those losses would not be as severe as many had feared.
Post trading, U.S. stock index futures appeared flat or slightly negative, indicating that tomorrow’s action may show mixed sentiments or some retrenchment from today’s highs.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.