U.S. Stocks Rally to Record as Financial, Energy Shares Advance

U.S. stocks climbed after equities posted their first back-to-back drop in almost a month, as commodity prices staged an early advance and financial shares rallied.

The S&P 500 Index rose 0.5 percent to 2,402.32 at 4 p.m. in New York, a fresh record and first close above 2,400. The Dow Jones Industrial Average climbed 0.4 percent to 20,981.94, shy of its March 1 high, while the Nasdaq Composite added 0.5 percent to a record 6,149.67. Stocks on Friday extended a weekly drop as April consumer prices and retail sales reinforced expectations for tepid economic growth.

  • Small-caps up 0.8%
  • Nine of 11 S&P 500 industry groups higher
  • S&P 500 Financials up 0.8% on gains in all but one company; Navient (NAVI) and Charles Schwab (SCHW) add at least 2.3%
  • Energy shares up 0.6% as WTI oil adds 2.2%
    • Crude higher after Saudi Arabia and Russia favored extending a production-cut deal for another nine months -- longer than expected
  • Materials stocks ahead 0.8% as Bloomberg Commodity Index pares early gains to end up 0.1% for 4th straight advance
  • Utility, real estate and telecom shares lag broader market
  • 10-year Treasury yield up less than 2bps
  • Stock movers (moves at least 2 standard deviation away from 20-day avg percent change):
    • Up movers: Cisco (CSCO), Halliburton (HAL), Netapp (NTAP), Qorvo (QRVO), J&J (JNJ)
    • Down movers: none
  • STREET WRAPS:
  • Volume 11% below 30-day average in S&P 500 at this time
    • Volume movers: Symantec (SYMC), Qorvo (QRVO), Regency Centers (REG), Ralph Lauren (RL), Cisco (CSC) all trading with volume at least 2.5x 30-day average
  • VIX up to 10.4
    • Volatility movers: Boston Properties (BXP), Mettler-Toledo (MTD), Comerica (CMA), Borgwarner (BWA), Paccar (PCAR) have highest put/call volume ratio in S&P 500
  • POLITICS:
    • North Korea boasted on Monday that a new rocket could carry a “large-size heavy nuclear warhead” over long distances, with analysts estimating it could reach U.S. military forces on the island of Guam
    • Attorneys from the Justice Department will again come before a federal appeals court to try to salvage President Donald Trump’s order banning travel from six mostly Muslim nations, after a judge said it appeared to be discriminatory
    • France: Edouard Philippe, the center-right mayor of the port city of Le Havre, was named France’s new prime minister
  • ECONOMY:
    • U.S.: May New York Fed Empire Index at -1.0, est. 7.5; prices paid and new orders both fell
    • China: The world’s second-largest economy slowed in April as authorities crack down on the nation’s swelling financial leverage; industrial output rose 6.5% last month from a year earlier, compared to 7% seen by economists and 7.6% in March
  • EARNINGS:
    • Earnings season coming to close: more than 90% of the S&P 500 firms have reported
      • Of those, 78% beat profit projections and 64% topped sales estimates, data compiled by Bloomberg show
    • After-market Monday: none
    • Pre-market Tuesday: Staples (SPLS), Home Depot (HD), TJX Cos (TJX)

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