Stocks bounced back from a lower open on Monday, handing the Dow its longest streak of gains since late May, as investors looked past soft data out of China and U.S. data that missed forecasts.
- The Dow closed up +151.39 or +0.45%
- The S&P 500 finished up +16.99 or +0.40%
- The Nasdaq ended up +80.87 or +0.62%
Stocks finished higher after reversing course from a lower open when disappointing economic news out of China set a negative tone. China’s retail sales, investment, and industrial output all slowed and missed forecasts, while the Asian country’s central bank trimmed lending rates.
Concerns about slower demand from China pressured the energy sector, with September WTI futures losing $2.68, or 2.9%, to settle at $89.41 a barrel.
In U.S. data releases, the New York Fed’s Empire State business conditions index, a gauge of manufacturing activity in the state, plummeted 42.4 points to a negative 31.3 in August. Though the figure didn’t help sentiment, economists were taking it with a grain of salt.
The Empire State data “wasn’t entirely bad: delivery times were steady for the first time in almost two years, employment managed to rise, and inflation pressures did not increase,” said Oren Klachkin, lead U.S. economist at Oxford Economics, in a note……..[read more]
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