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Wall Street rises on gains in retailers as Cyber Monday begins

Published 11/26/2018, 11:57 AM
© Reuters.  Wall Street rises on gains in retailers as Cyber Monday begins
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By Amy Caren Daniel

(Reuters) - U.S. stocks gained on Monday, helped by shares of retailers on expectations of blockbuster sales on the largest online shopping day of the year, and as technology shares rose after taking a beating last week.

Shoppers who missed out on deals on Black Friday are expected to flock to online sites on Cyber Monday. The shopping day is expected to rake in $7.8 billion in sales, according to Adobe (NASDAQ:ADBE) Analytics, which tracks about 80 percent of all online transactions from the top 100 U.S. retailers.

Shares of e-commerce giant Amazon.com Inc (O:AMZN) jumped 3.3 percent, while the largest U.S. consumer electronics retailer, Best Buy Co Inc (N:BBY), rose 3.3 percent.

All of the 11 main S&P sectors were trading higher and the S&P 500 retailing index <.SPXRT> rose 2.27 percent.

Also helping sentiment was oil prices, which rose to pare some its losses from the near-7 percent fall on Friday and lifted the shares of energy companies (SPNY) up 1.6 percent.

"We had a pretty miserable week in terms of the equity markets and sometimes you get a relief rally, markets could be bouncing a little bit based on that," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

"I think the anticipation ahead of the holidays is that it would be a pretty strong season and Black Friday is a big part of that."

At 10:06 a.m. EDT the Dow Jones Industrial Average (DJI) was up 376.18 points, or 1.55 percent, at 24,662.13, the S&P 500 (SPX) was up 38.10 points, or 1.45 percent, at 2,670.66 and the Nasdaq Composite (IXIC) was up 119.48 points, or 1.72 percent, at 7,058.46.

Wall Street's main indexes fell more than 3 percent last week, with the Dow and the Nasdaq posting their biggest weekly percentage declines since March, on plunging oil prices, worries about slowing global growth and peaking corporate earnings.

The S&P 500 on Friday closed 10.2 percent lower from its record closing high on Sept.20, confirming a correction for the second time in the year.

The technology sector (SPLRCT) rose 1.76 percent after posting its worst week in eight months last week.

Other members of the so-called FAANG group - Facebook Inc (O:FB), Apple Inc (O:AAPL), Netflix Inc (O:NFLX) and Google-parent Alphabet (O:GOOGL) - rose between 1 percent and 2 percent.

Nvidia Corp (O:NVDA) rose 3.3 percent after Credit Suisse (SIX:CSGN) begins coverage of the chipmaker with an "outperform" rating.

Investors will keep an eye on the G20 Summit this week, where U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to hold trade talks in Buenos Aires, Argentina.

Advancing issues outnumbered decliners by a 5.32-to-1 ratio on the NYSE. Advancing issues outnumbered decliners by a 3.17-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and one new lows, while the Nasdaq recorded 10 new highs and 23 new lows.

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