Share

Wall St opens higher, recouping some losses

Washington - US stocks opened higher on Monday, recovering some of their big losses last week when the Federal Reserve's decision to keep interest rates near zero raised concerns about the health of the global economy.

Investors will be looking for hints on when the Fed may finally raise rates when a number of central bank officials including chair Janet Yellen, appear in public this week.

Federal Reserve Bank of Atlanta President Dennis Lockhart, a voting member of the Fed's policy-making committee, speaks on Monday.

"We had a pretty dramatic selloff on Friday and it's normal to see some gains after that," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin.

Friday's selloff was exacerbated by "quadruple-witching", when options on stocks and indexes and futures on indexes and single-stocks all expire.

"I think we might see some volatility this week as investors peruse statements from the Fed officials as they look for more clarity and signals," Frederick said.

Investors are now focusing on the next Fed meeting on October 27 to October 28, though a growing number of economists now wonder whether the Fed will raise rates at all this year.

St. Louis Fed President James Bullard told CNBC on Monday there is a powerful case to be made for a rate hike, which he said could come in October. Bullard is a non-voting member of the Fed.

Oil prices rose by more than 2% on Monday after data showed US drilling slowed.

At 15:38 the Dow Jones industrial average was up 105.43 points at 16 490.01, the S&P 500 was up 11.19 points at 1 969.22 and the Nasdaq composite was up 26.64 points at 4 853.87.

All 10 major S&P sectors were higher, with the financial index's 1.26% rise leading the advancers.

Apple's 0.5% rise gave the biggest boost to the S&P 500 and the Nasdaq.

US data scheduled to be released on Monday includes existing home sales for August, which are expected to have dropped 1.3% after rising to an eight-year high in July. The numbers are expected at 16:00.

Shares of GoPro were down 5.1% at $33.36 after Barron's said the video camera maker's shares could plunge to $25 as its latest product launch underwhelmed customers amid increasing competition.

Chipmaker Atmel jumped 12.8% to $8.19, a day after Dialog Semiconductor said it had agreed to buy the company for about $4.6bn.

Advancing issues outnumbered decliners on the NYSE by 1 996 to 651. On the Nasdaq, 1 655 issues rose and 707 fell.

The S&P 500 index showed one new 52-week high and six new lows, while the Nasdaq recorded 15 new highs and nine new lows.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders