News Column

Major Averages Climb Firmly Into Positive Territory In Early Trading

July 14, 2014

WASHINGTON (Alliance News) - After showing a notable move to the downside last week, stocks have moved back to the upside in early trading on Monday. The major averages have climbed firmly into positive territory, with the Dow reaching a new record intraday high.

The early strength on Wall Street partly reflects a positive reaction to earnings news from Citigroup (C), with the financial giant jumping by 3.3% in early trading.

Before the start of trading, Citigroup reported adjusted second quarter earnings of USD1.24 per share on revenues of USD19.3 billion compared to analyst estimates for earnings of USD1.05 per share on revenues of USD18.9 billion.

The markets have also benefited from news on the merger-and-acquisition front, with URS Corp. (URS) moving sharply higher after agreeing to be acquired by Aecom (ACM) for approximately USD4 billion in cash and stock.

A vast majority of the major sectors have moved to the upside in early trading, although most are showing only modest moves.

Brokerage stocks are seeing considerable strength, however, with the NYSE Arca Broker/Dealer Index climbing by 1.1%. Morgan Stanley (MS) has helped to lead the sector higher, jumping by 2%.

Oil service, transportation, and defense stocks are also seeing early strength, while gold stocks have come under pressure amid a sharp drop by the price of the precious metal.

In recent trading, the major averages have moved roughly sideways, hovering near their highs for the young session. The Dow is up 120.88 points or 0.7% at 17,064.69, the Nasdaq is up 22.86 points or 0.5% at 4,438.35 and the S&P 500 is up 10.02 points or 0.5% at 1,977.59.

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Source: Alliance News

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