Stock Extend Friday's Rally
FOX Business: The Power to Prosper
After posting big gains and breaking a four-day losing streak on Friday, the markets kicked off the week with a solid advance.
As of 10:50 a.m. ET, the Dow Jones Industrial Average rose 78.9 points, or 0.6%, to 13175, the S&P 500 gained 7.7 points, or 0.55%, to 1399 and the Nasdaq Composite climbed 23.1 points, or 0.78%, to 2991.
The Dow soared 217 points on Friday as traders responded to better-than-expected data on the U.S. labor market. However, the blue-chip average only ended the week higher by 20.5 points, weighed down heavily by earlier losses.
After a week filled with several major central bank meetings and a deluge of economic data, this is one set to set off on slower tone. There are no major economic releases on tap.
On the corporate front, Knight Capital (NYSE:KCG) said in a filing Monday that it has struck a deal in which a group of investors will inject $400 million in exchange for 2% convertible preferred stock in the struggling market maker. These investors will get a roughly 70% stake in the company, according to an analysis by Reuters. This rescue comes after Knight made erroneous trades last week that cost it $440 million.
Best Buy (NYSE:BBY) Founder Richard Schulze proposed to take the retailer private for between $24 and $26 a share. That represents a premium of between 36% and 47% premium to Friday’s closing value.
In Europe, Spain's 10-year borrowing costs were at 6.78% on the secondary market, lower than the key 7% mark that has been watched. Equity markets in that country experienced a technical glitch that halted trading, according to a report by Reuters.
Commodities markets were little changed. The benchmark crude oil contract in New York fell 31 cents, or 0.34%, to $91.09 a barrel. Wholesale New York Harbor gasoline slumped 0.81% to $2.907 a gallon.
In metals, gold climbed $2.10, or 0.14%, to $1,611 a troy ounce.
The Euro Stoxx 50 rose 0.53% to 2385, the English FTSE 100 gained 0.29% to 5804 and the German DAX jumped 0.61% to 6908.
In Asia, the Japanese Nikkei 225 soared 2% to 8726 and the Chinese Hang Seng rallied 1.7% to 19999.