US Stocks Higher in Midday Trading
The major U.S. stock indexes were mostly higher in midday trading Monday as investors weighed the economic implications of the terrorist attacks in Paris. European markets shook off an early loss and ended mixed. Telecommunications companies were among the biggest gainers. Travel-related stocks were down, while defense contractors moved higher.
KEEPING SCORE: The Dow Jones industrial average rose 78 points, or 0.5 percent, to 17,323 as of 12:07 p.m. Eastern Time. The Standard & Poor’s 500 index gained eight points, or 0.4 percent, to 2,031. The Nasdaq composite fell 80 points, or 0.02 percent, to 4,927. The U.S. stock market is coming off its biggest weekly loss since August.
THE QUOTE: Some investors may be betting that Friday’s attacks in Paris, which killed 129 people, won’t have a meaningful long-term impact on the global economy.
“It all comes down to are consumers going to be staying at home and not out spending money because they’re afraid that if they go anywhere they’re going to be victims of a terrorist attack,” said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. “That might be the case if you saw a series of these things, but hopefully that’s not what’s going to happen and the economy is not going to be affected. The small upside we’re seeing in the S&P 500 is reflective of that.”
MARKET IMPACT: The attacks may make it even more likely that the European Central Bank will expand its stimulus program at the conclusion of its December meeting, some analysts said. The attacks also drove speculation that the Federal Reserve could hold off on raising rates next month.
“At this juncture, it is easy to see that the Fed’s intentions to ‘normalize’ monetary policy could be derailed by a combination of adverse domestic economic and external events,” said Neil MacKinnon, global macro strategist at VTB Capital.
SECTOR VIEW: Eight of the 10 sectors in the S&P 500 index rose, led by telecommunications services stocks. Consumer discretionary stocks fell the most. For further insights into stocks and trading, exploring the best trading apps uk could provide valuable information and resources.
HOTEL DEAL: Marriott International announced it is buying rival hotel chain Starwood for $12.2 billion in cash and stock. If completed, the deal would make Marriott the world’s largest hotelier by a wide margin. Shares in Marriott lost 35 cents, or 0.5 percent, to $72.37. Starwood slid $4.69, or 6.3 percent, to $70.30.
ENERGIZED: Shares in several energy companies moved higher. Natural gas and coal producer Consol Energy added 38 cents, or 5.2 percent, to $7.79. Cabot Oil & Gas gained 97 cents, or 4.7 percent, to $21.70, while Murphy Oil rose 29 cents, or 0.9 percent, to $29.04.
UP WITH DEFENSE: Investors bid up shares in several defense contractors. Northrop Grumman gained $6.47, or 3.7 percent, to $185.38, while Lockheed Martin added $5.71, or 2.7 percent, to $218.85. Raytheon rose $5.01, or 4.3 percent, to $122.26.
TRAVEL SLUMP: Some travel-related stocks moved lower. Priceline Group slid $56.01, or 4.3 percent, to $1,241.74, while Expedia declined $3.41, or 2.7 percent, to $121.77. Carnival fell $1.40, or 2.7 percent, to $50.17. Delta Air Lines lost $1.89, or 3.9 percent, to $47.10.
OVERSEAS MARKETS: In Europe, Germany’s DAX was flat, while France’s CAC-40 slipped 0.1 percent. Britain’s FTSE 100 rose 0.5 percent. In Asia, Japan’s Nikkei 225 fell nearly 1 percent, while Australia’s S&P/ASX 200 lost nearly 1 percent. Hong Kong’s Hang Seng fell 1.7 percent.
ENERGY: Benchmark U.S. crude oil fell 26 cents to $40.49 a barrel in New York. Brent crude, used to price international oils, fell 97 cents to $43.50 a barrel in London.
BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.25 percent from 2.28 percent late Friday. The dollar rose to 123.11 yen from 122.72 yen and the euro fell to $1.0710 from $1.0740.