Dow Jones:12,684.68 (+45.94) S&P 500:1,346.29 (+6.09) Nasdaq:2,843.25 (+15.69)
US STOCKS advanced yesterday, as commodity prices rebounded from the biggest weekly drop since 2008 and McDonald’s rallied after sales topped estimates.
Newmont Mining and Halliburton added at least 1.8 per cent as oil halted a five-day retreat and metal prices climbed.
McDonald’s, the world’s biggest restaurant chain, increased 0.8 per cent as smoothies and McCafe beverages drew US customers in April.
Dollar Thrifty Automotive surged 14 per cent as Hertz Global made a $2.08 billion offer.
The Dow Jones industrial average was up 45.94 points, or 0.36 per cent, at 12,684.68.
The Standard Poor’s 500 Index was up 6.09 points, or 0.45 per cent, at 1,346.29.
The Nasdaq Composite Index was up 15.69 points, or 0.55 per cent, at 2,843.25.
“Commodities look oversold as we get more evidence that the economy is rebounding,” said Peter Jankovskis, who manages about $2.8 billion at Oakbrook Investments in Lisle, Illinois.
“The jobs report we got on Friday and McDonald’s sales provided further evidence that the recovery is in place. The equity market is in a reasonable position given where earnings are,” he said.
Citigroup, the most-traded US stock in 2011, slumped 2.3 per cent following a one-for-10 reverse split.
US trading slowed following Citigroup’s reverse stock split. The bank accounted for 6 per cent of US trading in 2011 through last week, with average daily volume of 464.8 million shares, according to Bloomberg.
Volume on exchanges yesterday totalled less than 5.8 billion shares, second only to the day after Easter as the slowest trading day of the year.
“We’ve seen anemic volume,” said Bruce McCain, who oversees $22 billion as chief investment strategist at the private-banking unit of KeyCorp in Cleveland.
“A reverse stock split reminds you of how much you can lose when a stock craters. It probably shifts a little bit of the buying that might otherwise have gone into Citigroup, particularly for those who like to purchase low-priced shares in the hopes of rebound. Those investors will probably refocus on other parts of the market,” he said. – (Bloomberg)
