U.S. stocks extend winning streak; oil rebounds
Wall Street stocks rose on Monday, driving the Dow to another record high, on optimism about the U.S. economy, while U.S. oil prices rebounded after disappointing Chinese industrial data spurred an initial drop.
The gain in equities curbed safe-haven demand for U.S. government debt, driving U.S. Treasury debt prices modestly lower. The rally in equities, along with optimism about the economic outlook after Friday's surprisingly strong U.S. jobs report, also dented the safe-haven appeal of gold, though the metal edged higher on the Chinese data.
European shares were weaker after a cut in Italy's credit rating late on Friday by Fitch Ratings rattled investors' confidence about Italy's public finances and drove down banking shares.
The dollar clung to gains from Friday's U.S. jobs report, trading near a 3-1/2-year high against the yen and a three-month peak versus the euro.
The benchmark Standard & Poor's 500 stock index extended its winning streak to seven sessions and touched its highest intraday level since Oct. 15, 2007.
Friday's U.S. jobs report, along with encouraging data on the housing market, reinforced the appetite for stocks and views that the market will post further gains with help from the Federal Reserve's stimulus efforts.
"There's real belief in this rally," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "There are lots of investors out there looking for opportunities to put more money to work in equities, and they're using these little pullbacks we've had - and there haven't been many - as purchasing opportunities."
Wall Street's
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