For those investors that were part of the $6.5B sell imbalance on Friday, Monday must have been a painful tape to observe. Although they must have been feeling pretty good, when the index ripped through Friday’s low in premarket trading. In fact, it was a new low for the year and the index’s lowest level since December 2020.
However, around 10 PM EST on Sunday night, the script was flipped from super bearish to super bullish. Once the index proved it could hold Friday’s low close for the year, the bulls went on the aggressive.
The index was modestly in the green, when weak economic data was released at 10:00 AM fueling hopes for a pause in the interest rate hikes. The index was able to press into the 3700 handle eclipsing and closing above Friday’s high.
A mild round of profit taking into the close caused the index to end just off the highs for the day. For the session, the index gained 88.75 handles to close at 3690.25. That marks the best day for the index since July 19, when it gained 103.75 handles.
A major rally in Crude Oil futures was a huge positive catalyst for Exxon Mobil (NYSE: XOM) making it the biggest winner of the top components of the index. For the session, the issue added $4.61 or 5.28% to close at $91.92.
That was double the cash index’s advance of 2.59%.
Delivery issues caused Tesla Inc. (NASDAQ: TSLA) to be the biggest loser of the top components of the index. For the session, the issue declined by $22.85 or 8.6%.
PreMarket Prep Stock Of The Day: Wells Fargo & Company (NYSE: WFC)
Goldman Sachs brings out the buyers with a well-timed upgrade. Read more on WFC here.