The major indices rose today as investors started the new week in a major buying mode. The Dow gained 91 points and the S&P 500 gained 15 points. The star of the day was the tech-heavy Nasdaq, which gained 34 points, or 1.3%. The market was aided by positive news flow from the technology sector today, as well as economic data that led some to believe the Fed might be more likely to cut rates on the 18th of September.
The technology sector led the way as Apple Inc (NASDAQ:AAPL) and Yahoo Inc (NASDAQ:YHOO) jumped by 4.10% and 5.46% respectively. Apple received a lot of positive comments regarding sales of their iPhone today, which appear to be trending above expectations. Yahoo was named a Bear Stearns "top pick" as analysts at the firm believed that YHOO stock is undervalued and underappreciated after recent losses.
The energy sector was the other market leader of the day, after crude oil jumped above $75 a barrel on fears of increased activity in the tropics. Schlumberger Limited (NYSE:SLB) rose by 3.77%, and BJ Services Company (NYSE:BJS) jumped by 4.03% as oilfield services companies were particularly strong on the day. Oil exploration firms such as Noble Energy Inc (NYSE:NBL) and Apache Corporation (NYSE:APA) gained by 4.41% and 2.65% on the day.
Retailers were foremost among the groups who did not participate in today's rally. Kohl's Corporation (NYSE:KSS) fell by 3.86% as analysts reduced target prices after the company's website was down for over two days at the end of last week. The Home Depot Inc (NYSE:HD) shares traded down by over 5% after the company announced more buybacks priced at $37 a share.
The volume on the exchanges, though not terrible strong, was noticably higher than last week's anemic volume figures. The S&P 500 has now gained 4% in the last four trading sessions, and the market appears to be gaining some short-term footing. The Fed meeting on September 18th still looms, and investors will certainly not lose sight of that all-important meeting.
I am currently in a wait and see mode with the markets, as the short-term remains very unclear. Over the long-term I believe this market will head higher, with profit growth continuing and valuations appearing quite attractive.
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