Benchmarks finished in the green on the last trading day of September, after Deutsche Bank recovered from early losses to register strong gains. Concerns over the banking behemoth’s financial health eased on news that Deutsche Bank is close to reaching a settlement with the U.S. Justice Department. Continuing oil price rally also boosted investor sentiment. All the three key U.S. indexes registered weekly as well as quarterly gains. But for Nasdaq, both S&P 500 and Dow posted monthly declines.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) increased 0.9%, or 164.70 points, to close at 18,308.15. The S&P 500 rose 0.8% to close at 2,168.27. The tech-laden Nasdaq Composite Index closed at 5,312.00 also gaining 0.8%. The fear-gauge CBOE Volatility Index (VIX) decreased 5.2% to settle near at 13.3. A total of around 7.5 billion shares were traded on Friday, higher than the last 20-session average of 7.1 billion shares. Advancers outpaced declining stocks on the NYSE. For 69% stocks that advanced, 29% declined.
What Boosted The Benchmarks?
Shares of Deutsche Bank AG (DB - Free Report) jumped 14% after AFP reported that the German bank might be close to reaching a settlement of $5.4 billion with the U.S. Justice Department. This was significantly lower than the previously reported settlement figure of $14 billion.
Following this development, the Financial Services Select Sector SPDR (XLFS) increased 1.4%, posting its best gains in nearly two months to emerge as the best performer among the S&P 500 sectors. Dow components Goldman Sachs Group, Inc. (GS - Free Report) and JPMorgan Chase & Co. (JPM - Free Report) rose 1.5% and 1.4%, respectively. Both the two companies possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
In a recent meeting, members of the OPEC agreed that they needed to curb crude output. OPEC officials decided that a committee will be formed to determine how much output each country would have to cut. Following this news, WTI crude rose 0.9% to $48.24 per barrel.
The Energy Select Sector SPDR (XLE) rose 1.4% and was the one of the best performer among the S&P 500 sectors. Dow components such as Chevron Corporation (CVX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) surged 1.6% and 1%, respectively.
In economic news, personal income rose 0.2% in August according to the Bureau of Economic Analysis. Also, personal spending remains unchanged. Both the reading was lower than July’s increase of 0.4%.
For the week, the Dow, S&P 500 and Nasdaq increased 0.3%, 0.2% and 0.1%, respectively after OPEC members decided to reach a preliminary accord to curb oil production. Also, Microsoft Corporation (MSFT - Free Report) notched up gains following its initiative to increase its stake in the creative cloud space, consequently boosting markets. However, worries about the health of Deutsche Bank curtailed some of the week’s gains.
For the month, the Dow and S&P 500 fell 0.8% and 0.1%, respectively as uncertainty prevailed over policy statements from the Fed and Bank of Japan (BOJ). Investors maintained a cautious approach during the first three weeks of this month and awaited any changes in policy from the two central banks. However, the Nasdaq rose 1.7% in September on the back of Apple’s strong iPhone 7 performance.
For the third quarter, the Dow, S&P 500 and Nasdaq climbed 2.1%, 3.3% and 9.7%, respectively. Both the Dow and S&P 500 posted four straight quarterly gains, while the Nasdaq closed in the green after two consecutive quarters of decline. Markets rebounded from the steep losses it suffered on Brexit woes and corporate results came in better than expected. Also, Fed rate hike concerns reduced and hopes of a crude production freeze surfaced.
Stocks That Made Headlines Today
Archer Daniels' Expansion on Track, Acquires Caterina Foods
Archer-Daniels-Midland Company (ADM - Free Report) recently announced the acquisition of Lake Bluff, IL-based Caterina Foods, which manufactures gluten-free and high-protein pastas. ( Read More)
Janus Capital-Henderson Group Agree on an All-Stock Merger
Janus Capital Group, Inc. (JNS - Free Report) and London-based Henderson Group plc have entered into a merger agreement. (Read More)
Twitter May Find a Taker; Alphabet Seeks M&A Advice
Per media reports, Twitter Inc. (TWTR - Free Report) still holds the interest of Alphabet Inc. ( (GOOGL - Free Report) . The search giant seems keen on snapping up Twitter and is now taking financial advice to evaluate the buyout. (Read More)
Is Qualcomm Eyeing NXP Semiconductors Buyout?
Qualcomm Inc. (QCOM - Free Report) is reportedly in talks to buy the Netherlands-based semi-conductor company, NXP Semiconductors NV (NXPI - Free Report) . ( Read More)
Viacom's Special Committee to Review Proposed CBS Merger
Viacom Inc. (VIAB) recently announced that its board of directors has set up a Special Committee of Independent Directors to evaluate the company’s proposed merger with CBS Corp. (CBS). ( Read More)
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