(1888PressRelease)
July 01, 2009 - Investors are riding higher energy prices into the close of a strong quarter.
Energy, industrial and materials stocks led the market higher in light trading volume Monday as investors looked to put money into areas that would benefit from an improving economy.
Crude oil rose $2.01 to $71.17 a barrel on the New York Mercantile Exchange after Nigerian militants damaged and partly shut down an offshore oil platform belonging to Royal Dutch Shell.
Stocks rose sharply after seesawing in the early going. After running up the market more than 30 percent in three months on a litany of less bad economic data, investors have become more cautious about the pace of the economy's recovery in recent weeks, looking for more concrete signs of growth.
With the quarter's end on Tuesday some money managers could be buying stocks bolster their returns for the quarter. The Standard & Poor's 500 index is up 15.2 percent since the start of the April-June quarter.
"I think there might be a little bit of quarter-end of window dressing going on," said Robert Johnson, CEO at Taylor Parkson Associates. He also said that the jump in crude oil is helping to support the overall market.
In midday trading, the Dow Jones industrial average rose 82.98, or 1 percent, to 8,521.37. The S&P 500 index rose 7.75, or 0.8 percent, to 926.65, while the Nasdaq composite index fell 8.48, or 0.5 percent, to 1,846.70.
There is little by way of economic or corporate news expected Monday. However, this week, which is abbreviated by the Independence Day holiday on Friday, brings key data that will give investors a better sense of where the economy is headed.
The Taylor Parkson Associates CEO said “The market likely will trade in a tight range as investors await a clearer signal on the economy.”
"We want to see if things really are getting better," Johnson said.
Of particular importance is the government's monthly employment report, due Thursday. Though considered a lagging indicator of the country's economic health, the unemployment rate is still one of the most closely watched gauges of the economy. The labor market is intricately tied to many facets of the economy, including consumer spending.
Investors will also get readings on consumer confidence and manufacturing this week.
Though the Dow is still up 28.9 percent from a 12-year low on March 9, it has fallen 4.1 percent from a five-month high on June 12.
Last week, the major indexes finished mixed. The Dow fell 1.2 percent; the S&P 500 index slipped 0.3 percent; and the Nasdaq rose 0.6 percent.
Taylor Parkson Associates are a specialized advisory and consultancy company that provides investors with the resources necessary to find small stocks with tremendous growth potential, unknown to the general investing public.
Taylor Parkson Associates can also provide tax administration advice and services to high net worth individuals and corporations.
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