US Stock Market Overview – Stocks Rally Led by Materials and Technology; Telsa Continues to SurgeFactory orders improve
US stocks surged higher as riskier assets gain traction across the globe. All three major indices were higher led by the Nasdaq which rallied more than 2%. The dollar continued to rally, putting pressure on gold prices which weighed on metals and miners.
Telsa shares were all the rage for the second consecutive trading session. The stock rose 21% after rising 24% on Monday, up another $170 hitting a high $950 per share, before easing into the close. Telsa closed in December at $418 and is up 127% for the year. The stock price is severely overbought, but volume continues to rise as shorts keep covering. The Intercontinental Exchange is in talks to purchase eBay. The shares surged on the news. Factory orders in the US climbed to an 18-month high, driven by strong gains in manufactured goods.
The VIX volatility index dropped another 11% on Tuesday easing down toward the 16 levels. Most sectors in the S&P 500 index were higher on Tuesday led by Materials and Industrials, Utilities bucked the trend. The coronavirus remains in the headlines, which continues to weigh on crude oil prices.
During the trading session, the Intercontinental Exchange which owns the New York Stock Exchange made a takeover offer for eBay that could value the company at more than $30 billion. ICE would pay a premium of approximately 2-billion. It appears that ICE is interested in eBay’s core business and not its classified business.
Factory Orders Rise to 18-month Highs
Factory orders increased 1.8% in December, according to the Commerce Department which was the largest gain in 18-months. Expectations were for a 1.5% increase. November was revised down to show orders tumbling 1.2% instead of dropping 0.7% as previously reported. Factory orders fell 0.6% in 2019. Shipments of manufactured goods rose 0.5% in December after gaining 0.3% in November. Durable goods orders climbed 2.4%, while nondurable goods increased by 1.1%.