Here’s what moved markets on Monday– in real estate, new home sales rose to an annual rate of 330,000 units in June, from 267,000 in May. May figures were the lowest number on record, dating to 1963. Although an improved reading, the June figures are still seen as low, reflecting the sluggish pace of the economic recovery.
Still, the report was better than expected and investors reacted favorably, with the Dow up almost one percent, the S&P 500 rising 1.12% and the Nasdaq up 1.2%. The day’s stock movers included AIG, which rose on the news. FedEx Corporation surged after it revised its earnings-per-share guidance. The package shipping company is often seen as a barometer of the country’s economic health because of the nature of its business.
In world markets, the UK’s FTSE 100, Germany’s Dax, and France’s CAC 40 ended trading on a high note. Asian markets also ended the day higher.
In commodities, US light crude oil for September delivery was lower 6 cents to $78.92 a barrel, while gold for August delivery declined $2.70 to $1,185.10 an ounce.
In bonds, treasury prices fell, increasing the yield on the 10-year note to 3.00% from 2.99% on Friday.