US close: Stocks end higher as Fed's Lockhart calls for 2015 rate hike
US stocks closed higher on Monday as Federal Reserve policymaker Dennis Lockhart called for an interest rate hike this year.
The Dow rose 0.28% to 17,132 points, the Nasdaq increased 0.18% to 4,839 and the S&P 500 climbed 0.10% to 2,017.
Lockhart said there could be enough economic data to consider an interest rate hike at the 27-28 October meeting but there will be much more available in time for the December meeting.
"I think October is a live meeting, clearly there is the potential that the data coming in, in advance of the October meeting will be sufficient … we have a lot more in December," he said following a speech to a university association in Orlando, Florida, according to Reuters.
Lockhart added that the slowdown in China will hurt Europe more than the US.
While Lockhart’s remarks pointed to a rate hike this year, a weaker-than-expected US non-farm payrolls report this month prompted has many analysts to push back their forecast for a rate increase until next year.
Aside from the Fed official’s speech it was a rather quiet day for investors due to the bank holiday for Columbus Day with no major economic data releases and the bond market closed.
“Investors have short attention spans and they constantly need reasons to remain long and today didn’t deliver any real news positive or negative,” said IG market analyst, David Madden.
The biggest risers were utility stocks on the S&P while energy stocks declined as oil prices fell after OPEC revealed a further rise in its production level. OPEC noted in its monthly report that it had produced 31.57 million barrels of oil per day in September, the cartel's highest rate of production since 2012.
Brent crude slid 4.79% to $50.24 per barrel while West Texas Intermediate was down 4.7% to $47.40 per barrel.
In a lift to US shares, Chinese equities rose, driven by the People’s Bank of China’s pledge to introduce fresh stimulus measures to boost the country’s economy.
In corporate news, EMC gained after the data-storage company agreed to be acquired by Michael Dell and partners in a cash-and-stock deal valued at $67bn
Ford Motor reversed an earlier decline after revealing it plans to invest $1.8bn in China over the next three years, while Eli Lilly tumbled after the drug manufacturer reported termination of a drug trial.
Traders are now looking ahead to the first major earnings reports this week with third quarter results from J.P. Morgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Citigroup Inc. and Goldman Sachs Group Inc.
S&P 500 - Risers
Electronic Arts Inc. (EA) $68.11 +4.72%
Regeneron Pharmaceuticals Inc. (REGN) $526.83 +4.55%
Southwest Airlines Co. (LUV) $41.22 +3.20%
Ross Stores Inc. (ROST) $50.53 +3.04%
Vertex Pharmaceuticals Inc. (VRTX) $113.25 +2.95%
Delta Airlines Inc. (DAL) $48.50 +2.73%
Unitedhealth Group Inc. (UNH) $122.51 +2.72%
FirstEnergy Corp. (FE) $32.40 +2.66%
Priceline Group Inc (PCLN) $1,347.19 +2.58%
Anthem Inc (ANTM) $143.86 +2.40%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $22.45 -8.33%
Eli Lilly and Company (LLY) $79.44 -7.78%
Noble Corporation plc (NE) $12.03 -7.67%
Transocean Ltd. (RIG) $15.69 -7.60%
Avon Products Inc. (AVP) $3.83 -7.49%
Chesapeake Energy Corp. (CHK) $8.24 -7.21%
Nabors Industries Ltd. (NBR) $11.15 -6.93%
Denbury Resources Inc. (DNR) $3.47 -6.72%
Southwestern Energy Co. (SWN) $12.03 -6.02%
Joy Global Inc. (JOY) $16.91 -5.74%
Dow Jones I.A - Risers
Unitedhealth Group Inc. (UNH) $122.51 +2.72%
Visa Inc. (V) $74.99 +1.37%
Nike Inc. (NKE) $126.43 +1.19%
Travelers Company Inc. (TRV) $103.72 +0.76%
Walt Disney Co. (DIS) $106.35 +0.75%
Boeing Co. (BA) $140.68 +0.70%
Johnson & Johnson (JNJ) $95.99 +0.65%
Goldman Sachs Group Inc. (GS) $180.23 +0.58%
Home Depot Inc. (HD) $121.90 +0.47%
McDonald's Corp. (MCD) $103.24 +0.47%
Dow Jones I.A - Fallers
Caterpillar Inc. (CAT) $70.50 -1.12%
Chevron Corp. (CVX) $88.74 -0.93%
E.I. du Pont de Nemours and Co. (DD) $55.66 -0.93%
International Business Machines Corp. (IBM) $151.14 -0.82%
Apple Inc. (AAPL) $111.58 -0.48%
Merck & Co. Inc. (MRK) $50.71 -0.47%
JP Morgan Chase & Co. (JPM) $61.72 -0.34%
Microsoft Corp. (MSFT) $47.00 -0.23%
Procter & Gamble Co. (PG) $74.33 -0.20%
Pfizer Inc. (PFE) $33.22 -0.06%
Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $526.83 +4.55%
Ross Stores Inc. (ROST) $50.53 +3.04%
Vertex Pharmaceuticals Inc. (VRTX) $113.25 +2.95%
Priceline Group Inc (PCLN) $1,347.19 +2.58%
Amgen Inc. (AMGN) $153.04 +2.31%
Liberty Interactive Corporation QVC Group (QVCA) $27.90 +2.12%
Nxp Semiconductors Nv (NXPI) $89.01 +1.94%
Amazon.Com Inc. (AMZN) $550.19 +1.92%
Cerner Corp. (CERN) $65.20 +1.75%
Activision Blizzard Inc. (ATVI) $32.58 +1.59%
Nasdaq 100 - Fallers
Wynn Resorts Ltd. (WYNN) $71.20 -5.57%
Keurig Green Mountain Inc (GMCR) $55.03 -4.38%
Tractor Supply Company (TSCO) $85.74 -4.35%
Tesla Motors Inc (TSLA) $215.58 -2.32%
Viacom Inc. Class B (VIAB) $46.50 -2.06%
Intuitive Surgical Inc. (ISRG) $460.84 -1.88%
Liberty Global plc Series A (LBTYA) $44.33 -1.82%
Whole Foods Market Inc. (WFM) $33.65 -1.72%
Biogen Inc (BIIB) $264.67 -1.67%
Staples Inc. (SPLS) $12.19 -1.46%