Monday’s stock market action brought more bullishness at the beginning of a week, which will bring some important economic data. With the advance estimate of third-quarter GDP scheduled for release on Thursday and the October non-farm payrolls report set for Friday, it will be a challenge for stocks to maintain their current price levels through the week. Q3: U.S. GDP Nowcast: +2.1 percent
The Dow Jones Industrial Average (NYSEARCA:DIA) picked up 23 points to finish Monday’s trading session at 15,639 for a 0.15 percent advance. The S&P 500 (NYSEARCA:SPY) advanced 0.36 percent to 1,767. The Nasdaq 100 (NASDAQ:QQQ) rose 0.15 percent to finish at 3,384. The Russell 2000 (NYSEARCA:IWM) jumped 1.15 percent to 1,108. In other major markets, oil (NYSEARCA:USO) declined 0.26 percent to close at $34.04.
On London’s ICE Futures Europe Exchange, December futures for Brent crude oil advanced 23 cents (0.22 percent) to $106.14/bbl. (NYSEARCA:BNO). December gold futures advanced $1.20 (0.09 percent) to $1,314.40 per ounce (NYSEARCA:GLD). Transports drove up Mt. Everest on Monday, as the Dow Jones Transportation Average (NYSEARCA:IYT) climbed 1.22 percent.
In Japan, the stock market was closed for a public holiday (NYSEARCA:EWJ). In China, stocks advanced after the official non-manufacturing PMI report released by the National Bureau of Statistics indicated an increase to 56.3 in October from September’s 55.4. The Markit/HSBC China Non-Manufacturing PMI report will be released on Tuesday. The Shanghai Composite Index was unchanged at 2,149 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index declined 0.26 percent to end the day at 23,189 (NYSEARCA:EWH).
Meanwhile stocks advanced in Europe after HSBC reported on itself. The bank’s quarterly earnings report indicated a pre-tax profit of 30 percent. The Euro STOXX 50 Index finished Monday’s session with a 0.30 percent advance to 3,061 — climbing further above its 50-day moving average of 2,919. Its Relative Strength Index is 65.28 (NYSEARCA:FEZ).
Technical indicators revealed that the S&P 500 climbed further above its 50-day moving average of 1,700 after finishing Monday’s session with a 0.36 percent advance to 1,767. Its Relative Strength Index rose from 64.06 to 65.89. The MACD is on a level trajectory, suggesting the likelihood that the S&P 500 will remain near 1,767 during the immediate future.
For Monday, all sectors finished in positive territory. The energy sector led the group with a 1.24 percent advance.
Consumer Discretionary (NYSEARCA:XLY): +0.35 percent
Technology: (NYSEARCA:XLK): +0.39 percent
Industrials (NYSEARCA:XLI): +0.37 percent
Materials: (NYSEARCA:XLB): +0.40 percent
Energy (NYSEARCA:XLE): +1.24 percent
Financials: (NYSEARCA:XLF): +0.05 percent
Utilities (NYSEARCA:XLU): +0.21 percent
Health Care: (NYSEARCA:XLV): +0.08 percent
Consumer Staples (NYSEARCA:XLP): +0.09 percent
Bottom line: Stocks began a crucial week of economic data with a moderate advance, as the energy sector led the way forward.
John Nyaradi is the author of The ETF Investing Premium Newsletter.