Bonds Weaken as Stocks Rebound Today

US Stock markets ended higher on today, which seems in a complete contrast to yesterday when the S&P500 fell to its largest one day fall in over one month. Merger and acquisition activity was the main driver of support in the market today.

The Dow Jones gained 102.75 to finish at 17,879.55. The S&P 500 also gained and ended up at 2066.55 points. The Nasdaq Composite closed at 4755.81 points, showing a gain.

The rebound is broad across the markets, with the majority of main sectors ending is positive territory for the day. The only loser from the majors was the telecoms sector, which is normally considered defensive.

Stocks in the energy sector closed with the largest gains of the day despite a continued slide in oil. The energy index shot upward during the session to close with a gain of 1.33%. Some of the most traded stocks were Figure Marathon Petroleum (+ 3.69%), while Valero Energy gained 4.05%.

Mergers and acquisitions were the hot topic, Cypress Semiconductor announced on Monday its intention to take out its Spansion competitor for $ 1.59 billion in order to create a chipmaker worth more than two billion dollars in annual sales.

On economic news, construction spending bounced more than expected for October, which should put to rest fears of another economic slowdown in the closing quarter of the year.

Over on the Forex market, the US dollar bounced once again, supported by new lower oil prices. The decline helps the dollar’s strength, especially against the known commodity currencies such as Canadian Dollar and Rouble.

Treasury bonds lost further ground, being weakened by the stocks making gains and institutional investors preparing for a bond issue from Amazon of six billion dollars.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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