The major indices posted solid gains, adding to the massive rally from Friday, as investors pored through the latest US-China trade developments. The markets surged in the last session after Federal Reserve Chair Jerome Powell said the central bank would be “flexible” in its approach to monetary policy. Stronger than expected jobs growth also added to Fridays gains. According to Reuters, the Chinese foreign ministry said today that China and the US have expressed an eagerness to work together to resolve trade disputes, an encouraging sign for investors. Fourth quarter earnings season will kick off this week, providing better insight to the health of US corporations. At the end of the day, the markets closed in the green across the board:
DOW +98 at 23531
SP500 +17 at 2549
NASDAQ +84 at 6823
The 10 Year Treasury yield closed up 2 basis points to yield 2.68%
Oil prices closed +.81 at 48.77 a barrel
Gold prices closed +4.50 at 1290.30 an ounce
In the days’ stock news:
- Eli Lilly is buying Loxo Oncology in an $8 billion deal. LOXO closed up more than 66% while LLY closed 1/2% higher.
- Amazon shares rose after Pivotal Research Group initiated the company with a buy rating. AMZN closed +54.12 at 1629.51.