Stock Market News For Oct 4, 2017

Markets closed higher on Tuesday as the major benchmarks notched up record highs. While Dow posted its fifth consecutive session of gains, the S&P 500 and the Nasdaq posted their sixth straight day of gains. Moreover, Russell 2000 index also hit an all-time record close for the second straight day. Upbeat domestic vehicle sales and ISM manufacturing index readings boosted broad based gains for the markets.

The Dow Jones Industrial Average (DJIA) closed at 22,641.47, gaining 0.4%. The S&P 500 Index (INX) increased 0.2% to close at 2,534.58. Meanwhile, the Nasdaq Composite Index (IXIC) closed at 6,531.71, increasing 0.2%. Advancing issues outnumbered decliners on the NYSE by 1.14-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by 1.17-to-1 ratio. The CBOE VIX increased 1.9% to close at 9.63.

Benchmarks Notch Up Record Highs

Dow added 84.07 points to hit a record close on Tuesday, registering its fifth consecutive day of gains. Such a stellar showing was assisted by a rally in shares of 3M Co. MMM, which gained 0.9%. Meanwhile, the Nasdaq amassed 15 points to end in the green, marking its sixth session of gains. The companies possesses a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 advanced 5.5% to post six straight days of gains — its longest streak of gains since Sep 1. Of the 11 major sectors of the S&P 500, seven ended in the positive territory. Such an excellent run was supported by a surge in shares Delta Air Lines, Inc. DAL and United Continental UAL, which rallied 6.6% and 6.1%, respectively.

Moreover, the Russell 2000 index notched up 2.5 points to close at an all-time high of 1,511.97. This marked the small-cap index’s second straight record close in as many days. The Russell 2000 index also outperformed the large-cap benchmarks in the last 30 days average after increasing more than 7%.

Upbeat Vehicle Sales Report

Domestic vehicle sales remained upbeat in September after major car-makers reported strong sales for the month. Experts attributed such gains to heavy demands for vehicles in the wake of the two devastating hurricanes. Moreover, attractive discounts and demands for the repair of hurricane-damaged vehicles also bolstered revenues for auto makers.

General Motors GM stated that its sales surged 12% over the last month from about 279,397 vehicles the auto-giant sold last month. Meanwhile, Ford Motor F reported a surge of 9% in its sales in the last month and that of Toyota Motor gained 15% to hit 226,632 vehicles — it sold last month. Toyota’s run was supported by high demands for its Camry sedan, which was recently revamped by the auto-giant.

ISM Manufacturing Index Hit Its Highest Level Since 2004

According to the latest report from Institute for Supply Management, the ISM manufacturing index soared to 60.8% in September, up from 58.8%, marking its highest increase since 2004. The report also stated that index for new orders surged to 64.6%, whereas the measure of employment soared to 60.3% — its highest level since 2011.

Of the 18 industries which were surveyed, 17 posted gains for the month of August, in the backdrop of strong economic growth for the last eight years. Economists believe that such a showing can also be attributed to an increase in the new orders. At the same time there were certain sectors which reported losses in the wake hurricanes Harvey and Irma, citing rising supply and manufacturing costs as the primary reason behind such losses.

Stocks That Made Headlines

Sirius XM Rewards Shareholders with 10% Dividend Hike

Sirius XM Holdings Inc. SIRI has recently announced a dividend hike. (Read More)

Office Depot to Sharpen Edge With CompuCom Buyout

Office Depot, Inc. ODP seems to be well on track to give itself a complete makeover as it entered into an agreement to acquire CompuCom Systems, Inc.  (Read More)

Delta Stock Rallies on Encouraging Q3 Unit Revenue View

Delta Air Lines has struggled so far this year in the face of multiple headwinds including the back-to-back natural calamities (Harvey, Irma and Maria). (Read More)

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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
 
United Continental Holdings, Inc. (UAL) : Free Stock Analysis Report
 
Ford Motor Company (F) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
Sirius XM Holdings Inc. (SIRI) : Free Stock Analysis Report
 
3M Company (MMM) : Free Stock Analysis Report
 
Office Depot, Inc. (ODP) : Free Stock Analysis Report
 
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