US SMALL/MIDCAPS-Upgrades boost industrials, gas lifts energy
By Chuck Mikolajczak
NEW YORK, Oct 19 (Reuters) - S&P industrial and energy stocks rose on Monday after solid earnings and analyst comments on the hope that global recovery will drive demand.
The Standard & Poor's industrials were led by Joy Global Inc (JOYG.O) and Bucyrus International Inc (BUCY.O) after RBC Capital Markets started coverage of the companies with "outperform" ratings. They, along with Dow component Caterpillar Inc (CAT.N) and four other equipment makers, are expected to benefit from the upturn in the commodities cycle. For details, see [ID:nBNG522218]
Joy Global gained 5.5 percent to $54.89 and Bucyrus gained 5.2 percent to $41.09, both in Nasdaq trading.
A strong report from diversified manufacturer Eaton Corp (ETN.N), which spiked 6.5 percent to $64.37 on the New York Stock Exchange, also helped the sector. [ID:nN19314996]
The S&P MidCap Industrials index .4GSPI rose 1.8 percent, while the SmallCap Industrials index .6GSPI added 1.2 percent.
The S&P MidCap 400 index .MID advanced 1.3 percent and the S&P SmallCap 600 index .SML climbed 1.1 percent while the large-cap S&P 500 .SPX gained 1 percent. The MidCap is up 33 percent since the beginning of the year, including four straight months of gains. The SmallCap has gained 22 percent for the year, up for eight straight months.
"Here we are almost three-quarters into the month of October, and so far the bulls continue to reign and it does appear that we will continue to see this market move higher," said Peter Cardillo, chief market economist at Avalon Partners.
Mid- and small-cap energy shares also moved higher, buoyed by a 1.4 percent gain in natural gas NGX9. [ID:nN19378627]
McMoRan Exploration (MMR.N) rose 5.6 percent to $8.62 after the oil and natural gas company posted a wider-than-expected quarterly loss, but said it found potential hydrocarbon-bearing sands at one of its wells. [ID:nBNG425888]
The S&P MidCap Energy index .4GSPE jumped 2.1 percent while the SmallCap Energy index .6GSPE added 1.3 percent. (Reporting by Chuck Mikolajczak; Editing by Jan Paschal)
