US close: Dovish Brainard gives markets a green hue
US stocks finished in the green on Monday, as heated expectations the Federal Reserve will raise interest rates at its September policy meeting were given some relief.
The Dow Jones Industrial Average added 1.32% to 18,325.07 points, the S&P 500 rose 1.47% to 2,159.04 points and the Nasdaq 100 was up 1.78% to 4,764.65 points.
During the sesion, oil prices began reversing their weekend slides after OPEC said production from rival producers outside the organisation was going to be stronger than initially expected this year.
West Texas Intermediate crude added 0.35% to $46.04 per barrel and Brent edged up 0.35% to $48.18 per barrel.
Hawkish remarks by Fed policymakers last week fuelled speculation of a rate increase by the US central bank at the 20-21 September policy meeting.
Last Friday Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan both argued that the case for an interest rate rise has strengthened.
Atlanta Fed President Dennis Lockhart on Monday said a "serious discussion" of whether to raise interest rates at next week's meeting was warranted given improving economic conditions.
But on Monday, investors were wooed by a speech from leading dove Lael Brainard.
"Foreign consumption and investment are weak, while foreign demand for savings is high, along with an elevated demand for safe assets," Brainard said.
"Downside risks are also present in emerging market economies, where growth has slowed rapidly in recent years.
"Most importantly, China is undergoing a challenging transition from a growth model based on investment, exports, and debt-fueled state-owned enterprises to one driven by consumption, services, and dynamic private businesses," Brainard explained.
"Because of the adjustment costs along this transition path and demographic trends, Chinese growth will likely continue to slow."
Fed Minneapolis President Neel Kashkari also spoke during the afternoon, ahead of Tuesday’s September policy meeting blackout, after he earlier rejected Republican presidential candidate Donald Trump's accusations that politics play a part in Fed policy.
On the corporate front, HP shares were up 3.9%, having earlier slipped below the line, after it said it had agreed to buy Samsung Electronics Co’s printer business in a deal valued at $1.05bn.
Raptor Pharmaceutical shares jumped 20.54% after it agreed to be bought by Horizon Pharma in a deal valued at $800m.
Praxair also staged a turnaround, adding 0.95% - its stock was in the red after it ended talks with German industrial gas company Linde about a possible merger.
Dow Jones - Risers
Wal-Mart Stores Inc. (WMT) $71.94 2.33%
Procter & Gamble Co. (PG) $88.25 2.33%
Apple Inc. (AAPL) $105.44 2.24%
Coca-Cola Co. (KO) $43.20 2.18%
Visa Inc. (V) $82.97 2.02%
Cisco Systems Inc. (CSCO) $31.44 1.91%
Intel Corp. (INTC) $36.08 1.81%
International Business Machines Corp. (IBM) $158.29 1.67%
Pfizer Inc. (PFE) $34.66 1.61%
Microsoft Corp. (MSFT) $57.05 1.49%
Dow Jones - Fallers
E.I. du Pont de Nemours and Co. (DD) $68.22 -0.38%
Exxon Mobil Corp. (XOM) $87.30 0.52%
JP Morgan Chase & Co. (JPM) $67.06 0.62%
Home Depot Inc. (HD) $128.59 0.67%
Johnson & Johnson (JNJ) $119.16 0.79%
Travelers Company Inc. (TRV) $115.52 0.94%
Chevron Corp. (CVX) $102.25 0.97%
Merck & Co. Inc. (MRK) $63.19 1.12%
McDonald's Corp. (MCD) $115.97 1.20%
American Express Co. (AXP) $65.90 1.20%
S&P 500 - Risers
Freeport-McMoRan Inc (FCX) $11.08 7.89%
Perrigo Company plc (PRGO) $95.23 7.35%
Wynn Resorts Ltd. (WYNN) $104.01 5.69%
Chesapeake Energy Corp. (CHK) $8.05 5.64%
News Corp Class B (NWS) $14.50 5.53%
Vertex Pharmaceuticals Inc. (VRTX) $97.86 4.46%
News Corp Class A (NWSA) $13.90 4.04%
Tenet Healthcare Corp. (THC) $24.57 4.02%
Vulcan Materials Co. (VMC) $112.11 3.93%
Regeneron Pharmaceuticals Inc. (REGN) $399.51 3.92%
S&P 500 - Fallers
Kroger Co. (KR) $30.90 -1.97%
Extra Space Storage (EXR) $78.53 -1.74%
Marathon Oil Corp. (MRO) $15.47 -1.28%
Dow Chemical Co. (DOW) $52.91 -0.94%
Whole Foods Market Inc. (WFM) $28.39 -0.73%
Newfield Exploration Co (NFX) $44.23 -0.67%
Air Products & Chemicals Inc. (APD) $150.58 -0.63%
GameStop Corp. (GME) $27.04 -0.52%
Devon Energy Corp. (DVN) $43.19 -0.39%
American Airlines Group (AAL) $38.34 -0.39%
Nasdaq 100 - Risers
Liberty Media Corporation - Class A (LMCA) $24.03 5.67%
Liberty Media Corporation - Series C (LMCK) $23.71 5.52%
Liberty Global plc Series A (LBTYA) $33.10 4.98%
Liberty Global plc Series C (LBTYK) $32.05 4.47%
Vertex Pharmaceuticals Inc. (VRTX) $97.86 4.46%
Regeneron Pharmaceuticals Inc. (REGN) $399.51 3.92%
Endo International Plc (ENDP) $20.80 3.82%
Mylan Inc. (MYL) $41.33 3.61%
Illumina Inc. (ILMN) $170.71 3.55%
Alexion Pharmaceuticals Inc. (ALXN) $129.29 3.50%
Nasdaq 100 - Fallers
Whole Foods Market Inc. (WFM) $28.39 -0.73%
American Airlines Group (AAL) $38.34 -0.39%
Liberty Interactive Corporation QVC Group (QVCA) $19.54 0.26%
Intuit Inc. (INTU) $109.54 0.27%
Fastenal Co. (FAST) $40.71 0.35%
O'Reilly Automotive Inc. (ORLY) $279.23 0.37%
Ctrip.Com International Ltd. Ads (CTRP) $44.32 0.41%
JD.com, Inc. (JD) $26.50 0.49%
Monster Beverage Corp (MNST) $148.30 0.51%
CA Inc. (CA) $33.25 0.54%