U.S. Stocks Rally After Oil Advances, Dollar Weakens

U.S. stocks climbed after declining last week as political wrangling in Washington spurred uncertainty within financial markets.

The S&P 500 index added 0.4 percent to 2,392 at 10 a.m. in New York. The benchmark last week posted its biggest decline since mid-April, even as stocks were quick to rebound after a sell-off triggered by revelations connected to the FBI’s investigation of ties between the Trump campaign and Russia. The Dow Jones Industrial Average jumped 94 points to 20,899.

  • Consumer discretionary, industrial shares lead in early trading, up at least 0.5%
    • Ford shares are 9% of total S&P 500 volume -- volume up almost 3.5x 30-day average
  • Tech stocks up 0.5% as Qualcomm, Autodesk and Nvidia rally
  • Auto shares up 1.3% as Ford climbs 1.5% amid CEO shake-up
  • U.S. 10-year yield up less than 1bp
  • Volume in S&P 500 14% below 30-day average
  • VIX down to 11.4
  • Shares of materials and telecom stocks little changed
  • POLITICS:
    • Trump is on a marathon, 9-day overseas trip, with a first stop in Saudi Arabia followed by Israel
    • Trump landed in Israel on a groundbreaking direct flight Monday from Saudi Arabia and expanded a core theme of his Sunday speech in Riyadh: the U.S. will stand with Arab nations and Israel against threats posed by Iran
    • Trump to propose $1.7 trillion in cuts to a category of spending that includes major social and entitlement programs for lower-income Americans, as part of an effort to balance the budget within a decade
  • The CBOE Volatility Index, known as the VIX, advanced on Monday after last week retreating below its 3-month average 
  • ECONOMY:
    • April Chicago Fed national index 0.49 vs est. 0.11 (range 0.02 to 0.25); March revised to 0.07 from 0.08
    • Investors on Monday are awaiting speeches by Federal Reserve Bank of Minneapolis President Neel Kashkari and Philadelphia Fed President Patrick Harker
  • EARNINGS:
    • After-market Monday: Agilent Technologies (A)
    • Pre-market Tuesday: AutoZone (AZO)

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