1st LD Writethru: U.S. stocks rally to kick off February
Xinhua, February 3, 2015 Adjust font size:
U.S. stocks surged after volatile trading despite soft economic data Monday, with the three benchmark indices closing almost at their session highs, as investor enthusiasm was ignited by rebounding oil prices.
The Dow Jones Industrial Average jumped 196.09 points, or 1.14 percent, to 17,361.04. The S&P 500 added 25.86 points, or 1.30 percent, to 2,020.85. The Nasdaq Composite Index advanced 41.45 points, or 0.89 percent, to 4,676.69.
Investor sentiment was buoyed by the strong rebound in oil prices. U.S oil price increased nearly 3 percent Monday following Friday's biggest daily gains since June 2012, as traders expected that lower oil prices will slow the production.
Light, sweet crude for March delivery rose 1.33 dollars to settle at 49.57 dollars a barrel on the New York Mercantile Exchange,its highest level in nearly a month, while Brent crude for March delivery moved up 1.76 dollars to close at 54.75 dollars a barrel.
In response, the energy sector soared 3 percent, leading the gains of the S&P 500's 10 sectors.
Exxon Mobil reported better-than-expected earnings before the opening bell Monday. The company announced estimated full-year 2014 earnings of 32.5 billion dollars compared with 32.6 billion dollars a year earlier, which reflected the strength of its integrated business model in a lower price environment. Shares of Exxon Mobil rose 2.47 percent to 89.58 dollars apiece.
However, economic data came out negative. U.S. consumer spending, accounting for more than two-thirds of U.S. economy activity, fell 0.3 percent in December, the biggest decline since 2009, the Commerce Department said Monday in a report. Analysts said households tended to save the extra cash from falling gasoline prices and steady hiring.
Separate data from the Department showed construction spending rebounded 0.4 percent in December from November's 0.2-percent decline. The December reading trailed market expectations of a 0.6- percent gain.
The U.S. manufacturing Purchasing Manager's Index (PMI) registered 53.5 in January, the worst performance in a year, missing market consensus of 54.5, reported the Institute for Supply Management on Monday.
"As other countries weaken their currencies to boost exports, ( U.S.) domestic manufacturers suffer. A stronger dollar in combination with weak foreign demand will likely weigh on the manufacturing sector in upcoming months," said Jay Morelock, an economist at FTN Financial, in a note.
Meanwhile, the final seasonally adjusted Markit U.S. manufacturing PMI came in at 53.9 in January, well above the neutral 50.0 threshold, but also slightly shy of market estimates. Endite