Stocks Climb Higher On Monday

Stocks began an important week of economic data with a moderate advance.

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.

The Dow Jones Industrial Average (DIA) picked up 23 points to finish Monday’s trading session at 15,639 for a 0.15 percent advance. The S&P 500 (SPY) advanced 0.36 percent to 1,767.

The Nasdaq 100 (QQQ) rose 0.15 percent to finish at 3,384. The Russell 2000 (IWM) jumped 1.15 percent to 1,108.

In other major markets, oil (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. (BNO).

December gold futures advanced $1.20 (0.09 percent) to $1,314.40 per ounce (GLD).

Transports drove up Mt. Everest on Monday, as the Dow Jones Transportation Average (IYT) climbed 1.22 percent.

In Japan, the stock market was closed for a public holiday (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 (FXI). Hong Kong’s Hang Seng Index declined 0.26 percent to end the day at 23,189 (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 (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 (XLY): +0.35%

Technology: (XLK): +0.39%

Industrials (XLI): +0.37%

Materials: (XLB): +0.40%%

Energy (XLE): +1.24%

Financials: (XLF): +0.05%

Utilities (XLU): +0.21%

Health Care: (XLV): +0.08%

Consumer Staples (XLP): +0.09%

Bottom line: Stocks began a crucial week of economic data with a moderate advance, as the energy sector led the way forward.

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