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Current Futures: Dow -27.00, S&P -3.50, NASDAQ -7.75
U.S. markets advanced at a strong pace on Monday, after Goldman Sachs was upgraded to “buy” just one day ahead of the quarterly results.
Even though the S&P futures showed a lot of strength during the U.S. session, this was not the case earlier in the day. Throughout the Asian session, the S&P futures plunged a little more than 1% at a time when the market barely moves. Helped by the London open and by the European spot market, which bounced from multi-months low, the S&P futures managed to bottom and even post some small gains during the European session, TheLFB-Forex.com Trade Team said. Most of the uptrend from the S&P futures came during the U.S. trading hours, after analysts Meredith Whitney, one of the few analysts to downgrade the financial sector ahead of the credit crisis, upgraded Goldman Sachs to “buy” just one day ahead of the second-quarter earnings results.
Such an upgrade, denotes a strong vote of confidence, TheLFB-Forex.com Trade Team said. The main reasons cited for the upgrade are reduced competition, after Lehman and Bear Stearns closed their doors, at a time that the government is now preparing to issue a massive amount of debt as they backstop Treasury Notes. Goldman stands to make a huge amount of profit from this set-up, as they are a secondary dealer in the Treasury Market. Analysts expect Goldman to show an EPS of $3.65, while Meredith Whitney projected $4.65.
In the Dow Jones index, only Hewlett-Packard was trading in the red, while all the other member companies advanced. In the S&P 500, the biggest gainer was AIG, which gained a huge 21.00% on Monday, while the worst stock was CIT Group, which is presumably heading towards bankruptcy.
The Dow Jones Index added 152.58 points (1.87%) to 8,299.10, while the S&P 500 index gained 17.82 points (2.03%) to 896.95.
Crude oil for August delivery was recently trading at $59.60 per barrel, lower by $0.20.
Gold for August delivery was recently trading higher by $6.40 to $918.90.
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