U.S. Stocks Close On Firm Note

(RTTNews) - U.S. stocks closed on a strong note on Monday with several counters from across various sectors attracting buyers.

Firm commodity prices and the U.S. drug regulator's nod to a Pfizer-BioNTech coronavirus vaccine aided sentiment.

Technology stocks had a good outing once again, and contributed significantly to the fairly buoyant mood in the market.

Energy stocks gained ground in positive territory as crude oil prices rose sharply, rebounding smartly after six successive days of losses.

Investors awaited the Federal Reserve's annual Jackson Hole conference later in the week for clues on possible asset purchase tapering timeline.

Among the major averages, the Dow ended higher by 215.63 points or 0.61 percent at 35,335.71. The S&P 500 advanced 37.86 points or 0.85 percent to settle at 4,479.53, while the tech-laden Nasdaq closed stronger by 227.99 points or 1.55 percent at 14,942.65.

According to prelimineary estimate, the IHS Markit US Services PMI declined to 55.4 in August, falling for a third straight month, from 59.9 in July. Economists had expected the reading to come in at 58.3.

The IHS Markit US Manufacturing PMI fell to 61.2 in August from 63.4 in July, below market forecasts of 62.5. The IHS Markit US Services PMI dropped to 55.2 in August, falling for a third month, and from an all-time high of 70.4 in May.

Data from National Association of Realtors (NAR) said existing home sales in the US increased by 2% month-on-month to 5.99 million in July, beating forecasts for a rise to 5.83 million.

Among the gainers, Boeing, Chevron, Caterpillar and Intel moved up 2 to 3 percent. Salesforce.com, Honeywell International, Nike, JP Morgan Chase, Walt Disney, American Express and Amgen also ended notably higher.

Trillium Therapeutics Inc. shares skyrocketed nearly 190 percent. Pfizer Inc. and Trillum Therapeutics Inc. entered into a definitive agreement under which Pfizer will acquire Trillium for an implied value of $2.26 billion or $18.50 per share.

West Texas Intermediate Crude oil futures for October ended down by $3.50 or about 5.6% at $65.64 a barrel, snapping their longest losing streak in nearly two years. WTI crude futures shed about 9% last week.

In overseas trading, European stocks closed on a firm note on Monday, rebounding strongly after recording their biggest weekly loss in several months last week. Encouraging eurozone economic data and bargain hunting contributed to the uptick in the markets.

Asian markets closed higher on Monday, recovering well from recent losses, amidst a recovery in crude oil prices and positive U.S. stock futures.