Thursday May 28, 2009
Navivest
A rise in oil prices and positive reception to a treasury auction of 7-year notes, sent the stock market rallying in mid-day trading, after treading water most of the morning.
The Dow Jones Industrial Average closed up 103.78 to end the session at 8,403.80, a gain of 1.25%, NASDAQ was up 20.71 to finish at 1,751.79 for 1.20% and the S&P 500 finished the session at 906.83, up 13.77, a 1.54% gain.
Rising yields on government bonds had traders worried yesterday, that that the government might not be able to raise as much funds at it needs in the debt markets and that consumer credit would become more expensive, which could damper economic growth and that sent stocks crashing yesterday. The demand for today’s auction, helped allay those fears.
With the benchmark crude oil for July delivery tacking on $1.63 to $65.08, oil stocks were big winners on the day.
Exxon Mobil (XOM) climbed $0.93 to $69.23, Chevron (CVX) saw a $1.24 rise to $65.81, Apache (APA) gained $3.45 to $83.02, Anadarko Petroleum (APC) was up $2.06 to $47.11, Devon Energy (DVN) was up $2.02 to $62.31, Halliburton (HAL) rose $0.80 to $22.77 and Chesapeake Energy (CHK) climbed $1.45 to $22.28.
Gold stocks were also big winners on the day, even though gold dropped $2.20 to $961 in trading today. Randgold Resources (GOLD) rallied $3.22 to close at $69.88, AngloGold Ashanti (AU) was up $3.05 to $40.85, a whopping 8.07% move, and IAMGOLD Corporation (IAG) advanced $0.43 to $10.88, for a 4.11% move.
Leading the Dow higher were JP Morgan Chase (JPM), which climbed $1.99 to $36.65, IBM (IBM) was up $1.76 to $104.69, United Technologies (UTX) advanced $0.94 to $52.38 and Procter and Gamble (PG) moved up $0.81 to $52.59.
Aforementioned Exxon Mobil and Chevron are also Dow components.
