Continued optimism stemming from the Federal Reserves lowering of interest rates as well as a tame CPI number sent stocks higher today. The Dow finished higher by 76 points on the day. The Nasdaq gained 15 and the S&P 500 rose by 9 points.
Energy and basic materials were the sectors that led the market higher today as commodities continued to rise today. Crude oil hit another new high today, trading over $82 a barrel for much of the day. CNOOC Limited (NYSE:CEO) shares surged by 6.65% as international oil companies were
the strongest group inside the energy sector. GlobalSantaFe Corporation (NYSE:GSF) gained 2.47% on the day as the deepwater drillers were strong. Weatherford International (NYSE:WFT) shares rose by 2.53% today as the oil equipment and services company continued its recent tear.
Basic material stocks followed up yesterday's huge gains with further gains today. Monsanto Company (NYSE:MON) gained 3.21% on nearly double its average volume as the stock continues to run following Monsanto's raised 2007 earnings outlook from earlier this week. Newmont Mining (NYSE:NEM) shares gained 1.52% on the day as gold stocks gained after gold hit another new yearly high today.
Aerospace and defense stocks were mostly higher on the day with Honeywell International (NYSE:HON) and Boeing (NYSE:BA) gaining 1.71% and 1.57% respectively.
There were several notable 52 week highs today.
New 52 Week Highs
- AT&T Inc. (NYSE:T)- shares gained 1.84% today.
- Wells Fargo (NYSE:WFC)- shares gained 0.30% (I must admit the fact that this stock was on the 52 week highs list shocked me.)
- EBAY Inc. (Nasdaq:EBAY)- shares gained 1.42% on the day.
- Autodesk Inc. (Nasdaq:ADSK)- shares gained 2.15% on huge volume today.
The CPI number released this morning helped the market get off to the good start that it needed. The number showed an unexpected drop in prices of 0.1%. The price drop may be temporary in nature though, since most of the drop was due to cheaper oil and gas prices that were present in August.
Advancers led decliners by about a 2 to 1 margin on both the NYSE and the NASDAQ. Up volume was about 65% of the overall volume on both exchanges today. The overall volume on the exchanges was much heavier than it has been over the past two weeks or so, but was certainly not extremely heavy.
There are several important earnings reports out tommorrow that have the potential to move the market, so keep your eyes on the headlines tommorrow morning.
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