On Monday, stocks opened higher as optimism from Friday’s “fiscal cliff” talks carried over the weekend. The optimism was further strengthened by indications that the next tranche of Greek aid would come before Dec. 5.
The president is out of the country, and so nothing will likely be announced this week. The breather from the intense negotiations and the back-and-forth of rumors and announcements no doubt relieved pressure on the markets.
At Monday’s close, the Dow Jones Industrial Average was up 208 points to 12,796, the S&P 500 rose 27 points to 1,387, and the Nasdaq gained 63 points at 2,916. The NYSE traded 709 million shares and the Nasdaq crossed 416 million. On the Big Board, advancers exceeded decliners by 7.8-to-1 and by 3.7-to-1 on the Nasdaq. But more important, the upside volume versus downside volume on the NYSE hit an impressive 13.4-to-1.
Monday’s turn was billed as a “blue-chip reversal,” but the blue chips that bounced highest were the technology stocks of the Nasdaq. Google (NASDAQ:GOOG), our Trade of the Day, gained 3.25%, Amazon.com (NASDAQ:AMZN) rose 2%, and Apple (NASDAQ:AAPL) surged 7.21%. The Nasdaq was up 2.21%, leading the Dow, up 1.65%, and the S&P 500, which gained 1.99%.