Small caps rally, the Dow Jones temporarily exceeds 36K

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Investors were in a bullish mood to start the new month, triggering modest gains for major stock indexes.

Today’s gains came despite a pair of uninspiring economic reports, with the Institute of Supply Management (ISM) Purchasing Managers Index (PMI) falling to 60.8 in October from 61.1 in September – although it is still above the consensus economists estimate of 60.3.

Separate Census Bureau data showed construction spending unexpectedly declined in September (-0.5% actual vs. + 0.6% expected).

“While the data was somewhat disappointing, it was not surprising as the imprints of supply chain issues continue to be evident,” said Michael Reinking, senior market strategist at the New York Stock Exchange.

Still, the markets were able to hold their gains until the close.

The price action was led by small caps, with the Russel 2000 climbing 2.7% to 2,358 – a few steps from its mid-March high of 2,360.17.

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The Dow Jones Industrial Average rose 0.3% to 35,913 (briefly breaking the 36,000 mark for the first time), the Nasdaq Composite added 0.6% to 15,595 and the S&P 500 finished up 0.2% at 4,613. That was enough for new records for all three indices.

stock price chart 110121

stock price chart 110121

YCharts

Other stock market news today:

  • U.S. crude futures contracts rose 0.6% to $ 84.05 a barrel.

  • Gold Futures, helped by the weaker US dollar, improved 0.7% to close at $ 1,795.80 an ounce.

  • The CBOE Volatility Index (VIX) rose 0.9% to 16.41.

  • Bitcoin slipped 1.8% to $ 61,420.23. (Bitcoin trades 24 hours a day; the prices listed here are at 4 p.m. each trading day.)

  • Real estate market shares Zillow Group (ZG, -8.6%) sank Monday following two reports on the company’s home buying and selling activity. Earlier today, a note from KeyBanc analyst Edward Yruma said analysis showed that of about 20% of Zillow’s inventory, nearly two-thirds are listed below the purchase price. “Zillow may have looked at home acquisition at the wrong time, and we believe its profits may be at risk due to its current home inventory ($ 1.17 billion in 2Q21),” a- he writes. Later today, a Bloomberg report said Zillow is offering institutional buyers for about 7,000 of its homes, which it is trying to sell for a combined $ 2.8 billion.

  • You’re here (TSLA) Shares rose 8.5% to a new high amid some new developments. The company has launched an aggressive no-deposit rental program in China, and said a pilot program in the Netherlands would allow non-Tesla vehicles to charge at a handful of Tesla’s Supercharger stations. The gains also come amid CEO Elon Musk’s pledge to sell some of his stock “right now” to help raise $ 6 billion in response to a recent challenge from the director of the United Nations World Food Program. United, David Beasley, for billionaires to “step up now, on a time basis” to end world hunger.

Buckle up, it’s gonna be a busy week

In addition to the two-day Federal Open Market Committee (FOMC) meeting which will begin tomorrow – a meeting at which the central bank could unveil plans to start cutting monthly bond purchases – the jobs report October is due to be released Friday.

In addition, this week offers a earnings schedule, with blue-chip Pfizer (PFE) among them bright report and early tomorrow. And since many companies tend to announce dividend information at the same time as they report earnings, there could be many headlines on the market. dividend growth front.

To take AbbVie (ABBV), for example, which last week announced an 8.5% increase in its dividend alongside its quarterly results. This was the 50th consecutive increase in ABBV’s dividend, securing its membership in the Dividend Aristocrats.

The Dividend Aristocrats are S&P 500 companies that have increased their annual payouts every year for at least 25 years. If you don’t know the Aristocrats or just want to see which ones were added to the list this year, Check them.

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