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Overnight Markets: Wall Street gains for second straight day

Energy stocks were among the biggest winners, thanks to bargain hunters.

 
Overnight Markets: Wall Street gains for second straight day

US stocks gained for a second straight session on Monday as investors waded back into the market after Wall Street’s biggest weekly drop in two years.

The Dow Jones Industrial Average added 410 points, or 1.7%, to 24,601, the S&P 500 gained 36 points, or 1.39%, to 2,656 and the Nasdaq Composite added 107 points, or 1.56%, to 6,982.

Investors digested the newly released budget proposal of Trump administration for fiscal 2019, which includes $200 billion for infrastructure spending, more than $23 billion for border security and immigration enforcement, as well as $716 billion for military programmes, including the US nuclear arsenal.

The move helped sectors such as S&P materials and industrials. Energy stocks, which were among the biggest losers last week, were among the biggest winners, thanks to bargain hunters.

“Over the short term, the selloff is likely to persist for the next few weeks because we are still in an adjustment period with people focusing on inflation data,” said Lisa Erickson, head of traditional investments for US Bank Wealth Management.

In company news, Shares of CSRA Inc. surged 31% after the government IT company agreed to be acquired by General Dynamics Corp. in a deal that values CSRA at around $6.68 billion.

Qualcomm Inc. was up 2.6% amid reports that Broadcom Ltd. has secured some $100 billion of debt financing for its hostile bid for the chip maker.

Shares of 21st Century Fox added 2.2% after a report that Comcast Corp. may be looking to revive its bid to buy the company’s entertainment assets.

Shares of Lumber Liquidators Holdings Inc. slumped 8.8% after Wedbush analysts downgraded the wood floorings seller, citing concerns over the company’s fourth-quarter results.

In Asia, markets advanced on Tuesday in morning session, tracking gains made by Wall Street.

In Japan, the benchmark Nikkei 225 index rose 0.85%. Across the Korean Strait, the Kospi advanced 0.63%. Down Under, the S&P/ASX 200 edged up 0.42%.

Greater China markets were also buoyant early on. Hong Kong's Hang Seng Index rose 1.48% in early trade. On the mainland, the Shanghai composite tacked on 1.14% and the Shenzhen composite gained 0.84%.

 

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