Stocks Open Higher As Eurozone Jumps On PMI Data – Investor's Business Daily

This post was originally published on this site

Stocks launched higher in Monday’s short trading session, opening a week cut short by Tuesday’s Independence Day holiday.

The Dow Jones industrial average opened 0.4% higher, the the S&P 500 jumped 0.5%. The Nasdaq composite climbed 0.6% as Apple (AAPL), Tesla (TSLA) and three fo the four FANG stocks pulling higher.

The second quarter starts with a quiet week on the earnings front, with a set of tweets from Tesla’s (TSLA) Elon Musk and with Europe’s markets in a rallying mood after June data showed a shift to expansion in China and an acceleration in the Eurozone.

Europe’s markets traded briskly higher in their afternoon sessions: London’s FTSE 100 rose 0.5%, while the DAX in Frankfurt rolled ahead 0.9% and the CAC-40 in Paris climbed 1.2%.

Overseas, in Japan, Tokyo’s Nikkei 225 crept 0.1% higher.  Hong Kong’s Hang Seng index added less than 0.1% and the Shanghai Composite took a 0.1% gain.

Apple, FANGs Climb, Caterpillar Takes Early Hit

Walt DisneyDIS, American ExpressAXP and JPMorganJPM topped the Dow industrials, up more than 1% each. Caterpillar (CAT) dragged 0.5% lower after news reports said federal investigators claimed the company failed to file certain requested documents.

Tesla opened more than 1% higher after tweets  from chief executive Musk announced production of the company’s new Model 3 sedan roll would commence this week, ahead of schedule, that the first 30 Model 3s would be delivered to customers on July 28 and that output could hit 20,000 units by December.

Tesla shares pulled back nearly 6% last week, the stock’s first dip in six weeks. It ended the week well above its 10-week moving average and up 26% after clearing a flat base in early April.

Energy issues led the S&P 500, with drillers Diamond Offshore (DO), Transocean (RIG) and Ensco (ESV) topping the upside. Discovery Communications (DISCA) was also among the early leaders, up more than 3%.

Among IBD 50 names, Thor Industries (THO) hauled more than 2% higher.  The stock is trading below a 115.84 buy pointin a cup base.

Oil Above $46; June Manufacturing On Deck

Oil ticked higher, propping West Texas Intermediate above $46 a barrel. Gold dropped 0.7% to $1,233 an ounce. The dollar gained ground vs. the euro and the yen. Bonds edged up, trimming the 10-year yield 1 basis point to 2.31%.

The economic calendar gets a late start, with researcher Markit delivering its June manufacturing purchasing managers index at 9:45 a.m. ET. The Institute of Supply Management reports its June manufacturing index and the Commerce Department releases construction spending estimates for April at 10 a.m. ET.

Automakers will be reporting June sales throughout the session.

RELATED:

5 Reasons Not To Tune Out This Week: Investing Action Plan

Put These 4 China-Based Names On Your Stocks To Watch

The Big Picture: Stocks Indefinite, But Apple Shows Progress