Benchmarks settled in the green for the fourth-straight session boosted by gains made by large-cap technology stocks. The S&P 500 closed at a record level for the 50th time in 2014, its highest number of record closings in a year since 1995. The Dow too posted a record close for the 35th time this year. Gains in technology shares offset losses in energy and healthcare companies.
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) gained 0.9%, to close at 17,959.44. The Standard & Poor 500 (S&P 500) rose 0.4% to close at 2,078.54. The tech-laden Nasdaq Composite Index closed at 4,781.42; gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 7.5% to settle at 15.25. A total of about 6 billion shares were traded on Monday, lower than the month-to-date average of 7.86 billion. The day's volume was light due to the upcoming Christmas Day holiday. Advancers outpaced declining stocks on the NYSE. For 56% stocks that advanced, 41% declined.
Gains among technology shares helped benchmarks settle in the green. The Technology Select Sector SPDR (XLK) gained 1.2%, the highest among the S&P 500 sectors. Intel Corporation (INTC) was the biggest gainer among the Dow components. Shares of Intel went up 2.3%. Key technology stocks including Microsoft Corporation (MSFT), International Business Machines Corporation (IBM), Facebook, Inc. (FB), Cisco Systems, Inc. (CSCO) and The Priceline Group Inc. (PCLN) rose 0.7%, 1.9%, 1.9%, 1.6% and 3.6%, respectively. Telecom shares from the sector including Verizon Communications Inc. (VZ) and AT&T, Inc. (T) also gained 1% and 0.9%, respectively.
Gains in technology and telecom shares offset losses in energy and healthcare shares. Energy shares were hit hard due to slump in oil prices. The West Texas Intermediate (WTI) crude oil price dropped 3.4% to settle at $55.26 per barrel. Additionally, price of Brent crude oil also slipped 2.1% on Monday to settle at $60.11 per barrel. Crude prices had bounced back from a five and a half year low witnessed on last Friday.
The Energy Select Sector SPDR (XLE) declined 1%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Chevron Corporation (CVX), Schlumberger Limited (SLB), Kinder Morgan, Inc. (KMI), Occidental Petroleum Corporation (OXY) and Exxon Mobil Corporation (XOM) decreased 0.8%, 0.9%, 0.2%, 0.9% and 0.3%, respectively.
The healthcare sector also ended in negative territory. Shares of Gilead Sciences Inc. (GILD) nosedived 14% The decline came after Express Scripts Holding Company (ESRX), the largest manager of U.S. prescription-drug benefits, approved AbbVie Inc.'s (ABBV) hepatitis C drug Viekira Pak and removed Gilead's Harvoni and Sovaldi from its preferred list. Gilead was the biggest drag on the S&P 500.
The Health Care Select Sector SPDR (XLV) declined almost 1%. The sector was the second biggest loser among the S&P 500 sectors. Key healthcare stocks including Merck & Co. Inc. (MRK), Alexion Pharmaceuticals, Inc. (ALXN), Regeneron Pharmaceuticals, Inc. (REGN) and Vertex Pharmaceuticals Incorporated (VRTX) dropped 1%, 0.7%, 3.4% and 1.9%, respectively. Overall, 8 out of 10 sectors of the S&P 500 ended in the green.
Meanwhile, benchmarks gained for the fourth straight session as investors continued to cheer Federal Reserve's decision to remain “patient” before raising key interest rates. Fed had rephrased the term ‘considerable time' to ‘patience'. Fed also assured that rate hikes will be methodical and believes that increase in interest rates may happen sometime in 2015.
Coming to economic data, the National Association of Realtors reported existing home sales dropped 6.1% to a seasonally adjusted annual rate of 4.93 million in November from October's downwardly-revised figure of 5.25 million. This was also less than the consensus estimate of 5.18 million. Existing home sales slowed to its lowest pace in six months in November.
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) gained 0.9%, to close at 17,959.44. The Standard & Poor 500 (S&P 500) rose 0.4% to close at 2,078.54. The tech-laden Nasdaq Composite Index closed at 4,781.42; gaining 0.3%. The fear-gauge CBOE Volatility Index (VIX) declined 7.5% to settle at 15.25. A total of about 6 billion shares were traded on Monday, lower than the month-to-date average of 7.86 billion. The day's volume was light due to the upcoming Christmas Day holiday. Advancers outpaced declining stocks on the NYSE. For 56% stocks that advanced, 41% declined.
Gains among technology shares helped benchmarks settle in the green. The Technology Select Sector SPDR (XLK) gained 1.2%, the highest among the S&P 500 sectors. Intel Corporation (INTC) was the biggest gainer among the Dow components. Shares of Intel went up 2.3%. Key technology stocks including Microsoft Corporation (MSFT), International Business Machines Corporation (IBM), Facebook, Inc. (FB), Cisco Systems, Inc. (CSCO) and The Priceline Group Inc. (PCLN) rose 0.7%, 1.9%, 1.9%, 1.6% and 3.6%, respectively. Telecom shares from the sector including Verizon Communications Inc. (VZ) and AT&T, Inc. (T) also gained 1% and 0.9%, respectively.
Gains in technology and telecom shares offset losses in energy and healthcare shares. Energy shares were hit hard due to slump in oil prices. The West Texas Intermediate (WTI) crude oil price dropped 3.4% to settle at $55.26 per barrel. Additionally, price of Brent crude oil also slipped 2.1% on Monday to settle at $60.11 per barrel. Crude prices had bounced back from a five and a half year low witnessed on last Friday.
The Energy Select Sector SPDR (XLE) declined 1%. The sector was the biggest loser among the S&P 500 sectors. Shares of key energy stocks including Chevron Corporation (CVX), Schlumberger Limited (SLB), Kinder Morgan, Inc. (KMI), Occidental Petroleum Corporation (OXY) and Exxon Mobil Corporation (XOM) decreased 0.8%, 0.9%, 0.2%, 0.9% and 0.3%, respectively.
The healthcare sector also ended in negative territory. Shares of Gilead Sciences Inc. (GILD) nosedived 14% The decline came after Express Scripts Holding Company (ESRX), the largest manager of U.S. prescription-drug benefits, approved AbbVie Inc.'s (ABBV) hepatitis C drug Viekira Pak and removed Gilead's Harvoni and Sovaldi from its preferred list. Gilead was the biggest drag on the S&P 500.
The Health Care Select Sector SPDR (XLV) declined almost 1%. The sector was the second biggest loser among the S&P 500 sectors. Key healthcare stocks including Merck & Co. Inc. (MRK), Alexion Pharmaceuticals, Inc. (ALXN), Regeneron Pharmaceuticals, Inc. (REGN) and Vertex Pharmaceuticals Incorporated (VRTX) dropped 1%, 0.7%, 3.4% and 1.9%, respectively. Overall, 8 out of 10 sectors of the S&P 500 ended in the green.
Meanwhile, benchmarks gained for the fourth straight session as investors continued to cheer Federal Reserve's decision to remain “patient” before raising key interest rates. Fed had rephrased the term ‘considerable time' to ‘patience'. Fed also assured that rate hikes will be methodical and believes that increase in interest rates may happen sometime in 2015.
Coming to economic data, the National Association of Realtors reported existing home sales dropped 6.1% to a seasonally adjusted annual rate of 4.93 million in November from October's downwardly-revised figure of 5.25 million. This was also less than the consensus estimate of 5.18 million. Existing home sales slowed to its lowest pace in six months in November.
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