US stocks kick off New Year with a bang

Indices register new 52-week high levels

US stocks started New Year with a bang on Monday, 04 January 2009. Stocks registered solid gains throughout the day riding on the back of upbeat economic report and slipping dollar. The lower dollar popped up the energy and material sectors, which lent utmost support to the market.

At the end of the day on 04 January, 2010, the Dow Jones Industrial Average ended higher by 155.91 points at 10,583.96. Nasdaq ended higher by 39.27 points at 2308.2. S&P 500 ended higher by 17.89 points at 1132.99. It was new 52 week high for the indices.

All ten economic sectors ended higher for the day led by materials, energy, industrials, and financial sectors. Bank of America, Boeing, United Technologies, and Intel were the main Dow winners today.

In the currency market on Monday, the dollar index, which weighs the strength of dollar against the basket of six other currencies fell against almost all the counterparts. The dollar index settled for a loss of 0.5%.

Among economic reports expected for the day today, The Institute for Supply Management in US reported on Monday, 04 January, 2010 that manufacturing sector in US expanded in December for the fifth straight month.

The ISM manufacturing index rose to 55.9% from 53.6% in November. It was the highest since April 2006. Market was expecting a modest gain to 54.2%. Readings over 50% indicate that more manufacturing firms said business was improving than said it was worsening.

In a separate report, the government in US reported on Monday, 04 January, 2010 that U.S. construction projects fell in November, marking the seventh straight monthly decline. Overall, spending on construction projects fell 0.6% in November in line with expectation. Year over year, construction spending is down by 13.2% in November.

Mahindra Navistar Automotives, a joint venture between Navistar International and India's Mahindra & Mahindra announced its plans to start exporting its trucks in two years and reportedly said that it will initially export to South and Southeast Asian countries and South Africa.

Crude prices ended substantially higher on Monday, 04 January 2010, the first day of trading of FY 2010. Prices rose as the dollar fell sharply. Upbeat economic reports also helped crude oil glide up. On Monday, crude-oil futures for light sweet crude for February delivery closed at $81.51/barrel (higher by $2.15 or 2.7%). Crude settled above $81 for the first time in two months.

All the Indian ADRs registered healthy gains today. Tata Motors and MTNL were the largest gainers soaring 6.9% and 7.5% respectively. HDFC Bank and ICICI Bank, each gained around 2.7%.

For tomorrow, there are no economic or earning reports expected.