By Markus Heitkoetter
￼Stocks kicked off the week on a high note today.
The major indices gapped higher at the open and never looked back. After ending the session at highs of the day, stocks were looking at their biggest rally in three months.
Here’s why traders were bullish today:
China – The Shanghai Composite jumped 4.9%. The move was actually linked to disappointing trade data. But the bad news was interpreted as good news by traders who believed the data could mean more stimulus.
Greece – In overnight trading it was reported that Greece and Eurozone leaders are ready to secure a Greek bailout package before the August 20th ECB deadline.
Commodities – Crude Oil (CL) and other commodities experienced some solid buying today. Crude Oil ended the open outcry session up 2.6% with a close of $45 a barrel. It was the biggest increase in the last 2 months.
The S&P jumped 26.5 points. With a 1.28% increase the S&P ended the day at 2104.18. Today’s rally put the S&P back above its 50-day moving average, and back above the 2100 mark for the first time in August.
It was the DOW that led the major indices today with a 1.39% rally. The DOW added 242 points and finished the session at 17615.17. Today’s rally put an end to the DOW’s longest losing streak in 4 years.
The NASDAQ enjoyed a 1.15% gain. With a 58 point rally the NASDAQ finished the day at 5101.79.
Looking at the economic calendar, the more important reports will be released later this week. In the meantime we have Preliminary Nonfarm Productivity and Preliminary Unit Labor Costs released pre-market at 8:30am ET tomorrow.