Monday brought about rise in U.S stock futures as the earning season for the quarterly ends up and due to the poor data from China hoping for additional boost from Beijing.
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Shares of Precision Castparts soared 19.10 percent to 230.92 U.
“The market took their cues from China overnight, and the Berkshire deal is another factor driving investor sentiment today”, said Aaron Clark, a portfolio manager at GW&K Investment Management, which oversees about US$25 billion.
Major indexes have had trouble sustaining gains in 2015 in the face of an uneven U.S. economy, financial tumult in Europe, a slowdown in once-booming China and the prospect of rate increases.
“M&A will continue to be robust because funding is still cheap (even with the proposed rate hike) and excess cash needs to be invested”, said Clark.
The industrials sector also rallied higher thanks to billionaire investor Warren Buffett, who inked his biggest acquisition deal ever Monday.
The Dow Jones Industrial Average spiked 241.79 points, or 1.39 percent, to 17,615.17.
The Benchmark S&P 500 Index was most recently 14.43 points or 0.69% lower at 2089.04 points with nine of its ten key sectors trading lower.
Dow components Caterpillar Inc.
It was the seventh straight day of declines for the Dow Jones industrial average, the longest losing streak for the index since July 2011.
“It’s going to be very tantamount to how aggressive the Fed is actually going to be”, he said. Though the labor market has rebounded, inflation rate stays below the 2-percent target. (NASDAQ:AAPL) led the index higher, gaining almost 3.8 percent and 3.6 percent, respectively.
With many U.S. companies boosting their earnings per share by cutting costs and buying back stock instead of by growing their businesses, stock valuations remain a concern.
Advancing issues outnumbered decliners on the NYSE by 2,307 to 696. Volume fell on both the NYSE and the Nasdaq.
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Chinese producer prices in July hit their lowest point since late 2009, while exports tumbled 8.3 percent, stoking expectations of more action from the central bank after months of intervention by authorities to tame its unruly stock market.
