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Wall Street closed sharply higher on Monday buoyed by strong performance of technology stocks. Moreover, solid fourth quarter earnings results boosted investors’ confidence in risky assets like equities. All three major stock indexes ended in the green.
The Dow Jones Industrial Average (DJI) closed at 25,239.37, gaining 0.17% or 174.48 points. Meanwhile, the S&P 500 Index (INX) also increased 0.7% to close at 2,724.87. The Nasdaq Composite Index (IXIC) closed at 7,347.54, rising 1.2%. A total of 6.52 billion shares were traded on Monday, lower than the last 20-session average of 7.62 billion shares. Advancers outnumbered decliners on the NYSE by 2.06-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.19-to-1 ratio. The CBOE VIX decreased 2.5% to close at 15.73.
How Did the Benchmarks Perform?
The Dow ended in the positive territory for two straight-days. Notably, 21 stocks of the 30-stocks blue-chip index finished in the green while nine ended in red. The tech-heavy Nasdaq Composite ended in the green reversing its previous day’s losses, due to strong performance by large tech stocks.
The S&P 500 closed in positive territory for fourth consecutive days. The Technology Select Sector SPDR (XLK) and IndustrialsSelect Sector SPDR (XLI) were major gainers with 1.6% and 1.3%, respectively. Notably, nine out of 11 sectors of the benchmark index closed in the green while the remaining two finished in the red.
Technology Stocks Lead Market Rally
Monday’s market rally was generated by strong showing by larger-cap technology stocks, especially the FAANG group stocks. Expectations of strong performance by Alphabet Inc. (GOOGL - Free Report) led the market rally. Alphabet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 RanK (Strong Buy) stocks here.
Positive development on the trade war front, financial stimulus by the Chinese authorities to stabilize its economy and massive product innovations acted as catalysts for the technology sector’s revival. Moreover, the technology sector is benefiting from continued strong digital transformation environment.
The last few years have witnessed a series of breakthroughs in cloud computing, predictive analysis, artificial intelligence (AI), self-driving vehicles, digital personal assistants, and Internet-of-Things (IoT), which have set the stage for robust growth.
Positive Developments on Trade War Front
On Jan 31, CNBC reported citing sources that officials of the two countries are trying to organize meeting between President Trump and his Chinese counterpart Xi Jinping in late February. This will be the second meeting between the two leaders in less than three months.
President Donald Trump told reporters that he is hopeful of forging a deal with China before the March deadline. Notably, the two countries are currently observing a trade truce which will come to end on Mar 1.
Notably, ongoing trade-related concerns between the United States and China are the biggest reasons for an impending global economic slowdown in 2019. If the tariff conflict between the two largest trading countries can be resolved, it will bolster global economic growth.
Economic Data
The Department of Commerce reported that U.S. factory orders for the month of November declined 0.6%. The consensus estimate was for a growth of 0.2%. However, new order for manufactured durable goods increased 0.7%.
BP plc (BP - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.04 per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. (Read More)
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Stock Market News For Feb 5, 2019
Wall Street closed sharply higher on Monday buoyed by strong performance of technology stocks. Moreover, solid fourth quarter earnings results boosted investors’ confidence in risky assets like equities. All three major stock indexes ended in the green.
The Dow Jones Industrial Average (DJI) closed at 25,239.37, gaining 0.17% or 174.48 points. Meanwhile, the S&P 500 Index (INX) also increased 0.7% to close at 2,724.87. The Nasdaq Composite Index (IXIC) closed at 7,347.54, rising 1.2%. A total of 6.52 billion shares were traded on Monday, lower than the last 20-session average of 7.62 billion shares. Advancers outnumbered decliners on the NYSE by 2.06-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 2.19-to-1 ratio. The CBOE VIX decreased 2.5% to close at 15.73.
How Did the Benchmarks Perform?
The Dow ended in the positive territory for two straight-days. Notably, 21 stocks of the 30-stocks blue-chip index finished in the green while nine ended in red. The tech-heavy Nasdaq Composite ended in the green reversing its previous day’s losses, due to strong performance by large tech stocks.
The S&P 500 closed in positive territory for fourth consecutive days. The Technology Select Sector SPDR (XLK) and IndustrialsSelect Sector SPDR (XLI) were major gainers with 1.6% and 1.3%, respectively. Notably, nine out of 11 sectors of the benchmark index closed in the green while the remaining two finished in the red.
Technology Stocks Lead Market Rally
Monday’s market rally was generated by strong showing by larger-cap technology stocks, especially the FAANG group stocks. Expectations of strong performance by Alphabet Inc. (GOOGL - Free Report) led the market rally. Alphabet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 RanK (Strong Buy) stocks here.
Positive development on the trade war front, financial stimulus by the Chinese authorities to stabilize its economy and massive product innovations acted as catalysts for the technology sector’s revival. Moreover, the technology sector is benefiting from continued strong digital transformation environment.
The last few years have witnessed a series of breakthroughs in cloud computing, predictive analysis, artificial intelligence (AI), self-driving vehicles, digital personal assistants, and Internet-of-Things (IoT), which have set the stage for robust growth.
Positive Developments on Trade War Front
On Jan 31, CNBC reported citing sources that officials of the two countries are trying to organize meeting between President Trump and his Chinese counterpart Xi Jinping in late February. This will be the second meeting between the two leaders in less than three months.
President Donald Trump told reporters that he is hopeful of forging a deal with China before the March deadline. Notably, the two countries are currently observing a trade truce which will come to end on Mar 1.
Notably, ongoing trade-related concerns between the United States and China are the biggest reasons for an impending global economic slowdown in 2019. If the tariff conflict between the two largest trading countries can be resolved, it will bolster global economic growth.
Economic Data
The Department of Commerce reported that U.S. factory orders for the month of November declined 0.6%. The consensus estimate was for a growth of 0.2%. However, new order for manufactured durable goods increased 0.7%.
Stocks That Made Headline
BP Beats on Q4 Earnings, Foresees $2B Oil Spill Cost in 2019
BP plc (BP - Free Report) reported fourth-quarter 2018 adjusted earnings of $1.04 per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. (Read More)
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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