Sam Collins

How High Will the Market Go?

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The market was a bit nervous prior to Monday's opening, as traders tried to assess any possible damage to Chinese trade relations from the U.S. decision to place punitive sanctions on Chinese tire imports. The Chinese responded with threats to restrict chicken and auto-product imports from the United States.

Prices plummeted 60 Dow points at the opening, but quickly recovered and spent the remainder of the day making up for the early losses.

Among the leading groups on Monday was the tire industry with Goodyear Tire & Rubber Co. (GT) up 3% and Cooper Tire & Rubber Co. (CTB) up 7.1%. But, overall, gains were restrained by selling in Sanderson Farms (SAFM), off about 0.5%, and Tyson Foods (TSN), which was down more than 2%.

The U.S. dollar fell again versus the euro. Treasury prices also fell with the two-year note now yielding 0.919% and the 10-year note at 3.421%.

At the close, the Dow Jones Industrial Average (DJI) was up 21 points to 9,627, the S&P 500 (SPX) gained 7 points to 1,049, and the Nasdaq (NASD) gained 11 points to 2,092.

The NYSE traded 1.2 billion shares with advancers over decliners by 2-to-1. On the Nasdaq, advancers were ahead by 8-to-5 on volume of 643 million shares.

October crude oil fell 43 cents to $68.86 a barrel, and the Energy Select Sector SPDR (XLE) rose 40 cents to $54.