12.08.201405:38:51UTC+00US stocks rise on geopolitical risk optimism

US stocks increased in the trading session with S&P 500 regaining confidence as it reclaims a two day consecutive day rise in two weeks as concern over the geopolitical tension in Ukraine and Iraq ease.

The Dow Jones Industrial Average added 0.10% or 16.05 points to 16,569.98 following a surge earlier in the trade but ultimately cutting of the gains by more than 60 points to where it is now. The index was bolstered by blue-chip leaders Intel and Caterpillar while Wal-Mart dragged the gauge down along with 11 other sectors. The S&P 500 also retreated from a surge in earlier trade and settled to a 0.28% advance or 5.33 points to 1,936.92 with the consumer staples lifting the gauge while utilities acting as laggards. All 10 sectors are in the green so far. The Nasdaq Composite pared its jump in the early trade as well, ending at a 0.70% gain or 30.43 points or 4,401.33 driven up by the pharmaceuticals sector. The fear gauge of investors or the CBOE Volatility Index stayed steady above 15 on average in the past month but finished today at 14.18. The trend showed that for every three climbing stock, one declined. The New York Stock Exchange witnessed more than 596 million exchange hands with composite volumes exceeding 2.7 billion.

Drugmaker, ManKind Corp. gained 4.9% following the deal with Sanofi to pay the company an amount of $925 million for the only available inhaled insulin in the world. Priceline Group Inc. added 2.2% following a better-than-expected second-quarter revenue while Kinder Morgan Inc. surged by 9% following the announcement that the company plans the consolidation of its energy businesses. Dean Foods Co. shed 3.9% after it withdrew its full-year profit forecast.

Chief investment officer at McQueen, Ball & Associates in Bethlehem, Bill Schultz, commented to Bloomberg that there is a general vibe out there that the geopolitical tension is waning and that “at least the situation is better than the belligerent talk that was coming out in the middle of last week.” Schultz adds that the market is at lower levels compared to the status last two weeks ago which means there is a better “entry point” if you want to increase your stocks.