This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Market Today: Dow Surges Above 17,000 as Citigroup Tops Street

NEW YORK ( TheStreet) -- Markets were boasting healthy gains Monday with the Dow Jones Industrial Average closing well above the psychological threshold of 17,000, a level it had dipped below after European markets sold off last week.

Driving factors behind Monday momentum were twofold: Citigroup (C - Get Report), the second bank to report, recorded second-quarter earnings well over expectations and several pharmaceutical companies spoke of M&A activity.

The Dow hit an intraday record high of 17,088.43 before settling 0.66% higher to 17,056. The S&P 500 climbed 0.48% to 1,977.1, while the Nasdaq gained 0.56% to 4,440.42 This marks the second consecutive session of advances for benchmark indices, though Friday's gains were minor.

Citigroup beat second-quarter earnings estimates, helping to push shares up 3% to $48.42. The bank reported adjusted earnings of $1.24 a share vs. the consensus estimate of $1.05. Citigroup also announced a $7 billion settlement with U.S. authorities over the investigation of its sales of mortgage-backed bonds.

Citigroup's peers rallied in response to the upbeat report. Bank of America (BAC - Get Report) added 1.2%, JPMorgan (JPM) moved 0.88% higher and Goldman Sachs (GS) jumped 1.3%. JPMorgan and Goldman are due to report before the bell Tuesday, while Bank of America will report Wednesday.

July 14 Premarket Briefing: 10 Things You Should Know

Stock Market Today: Stocks Turn Positive Though Upside Remains Limited

European Stocks Rise as Focus Is on Upbeat Corporate News

Mylan (MYL - Get Report) popped 2.1% to $51.24 after the company said it would buy Abbott's (ABT) non-U.S. developed markets specialty and branded generics business for $5.3 billion in stock.

Shire (SHPG), the Dublin-based drugmaker, said Monday it would be willing to recommend to its shareholders a new $53 billion takeover bid from AbbVie (ABBV). Shire was up 2.1% to $254.27 and AbbVie shares slipped 0.2% to $54.85.

M&A activity was also seen in the energy sector after Whiting Petroleum (WLL) announced it was buying Kodiak Oil & Gas (KOG) for $3.8 billion in stock and the assumption of $2.2 billion in debt. The deal will make it the largest producer in the booming Bakken region of North Dakota and Montana. Whiting shares were advancing 7.7% to $84.58 and Kodiak was tacking on 4.8% to $14.91.

Markets in Europe and Asia were also back in positive territory on Monday. "Reassured that systemic risks from Portugal are very limited, even in a worst case scenario, the dust settled somewhat Friday after Thursday's market tremors," wrote Michala Marcussen, global head of economics at Societe Generale.

As the economy continues to improve and labor market trends point higher, Gina Martin Adams, Wells Fargo Securities' institutional equity strategist, is expecting the S&P 500 to post 6.5% year-over-year EPS growth for the second quarter, up from the 3.3% reported in the first quarter and 3.9% a year ago. Fifty-nine S&P 500 companies are scheduled to report this week.

--By Andrea Tse and Keris Alison Lahiff in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.22 -0.94%
C $44.83 -1.60%
MYL $42.43 -2.90%
AAPL $95.03 -0.16%
FB $117.32 -0.09%


Chart of I:DJI
DOW 17,718.82 -32.09 -0.18%
S&P 500 2,054.49 -8.88 -0.43%
NASDAQ 4,744.7920 -18.4320 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs