Tech, health care stocks are big gainers
Investors shrugged off geopolitical jitters Monday, sending U.S. stocks broadly higher and extending the market's gains from last week.
Technology companies, health care stocks and industrial firms accounted for much of the rally as traders focused on the latest company earnings and deal news. Oil prices fell after surging last week ahead of the U.S.-led missile attack on Syria's chemical weapons program.
“It's some relief from the global political situation over the weekend,” said Willie Delwiche, investment strategist at Baird. “The other thing is we've had over the last few weeks particularly this buildup in pessimism, and that provided some opportunity for stocks to rally once the news of this event was out of the way.”
The market was in rally mode from the start of trading Monday, despite a sell-off among major indexes in Europe.
Investors seemed to put aside concerns over the geopolitical tensions that led to Friday night's missile attack by the U.S., Britain and France on Syria's chemical weapons program. On Monday, the White House said it was considering imposing additional sanctions on Russia, a key ally of Syrian leader Bashar Assad.
Instead, the market shifted its focus to corporate America. Wall Street is forecasting the strongest growth in seven years for S&P 500 companies, and the hope has been that healthy profit reports will steady the market following a rough couple of months. Over the long term, stock prices tend to track the progress of corporate profits.
Investors welcomed J.B. Hunt Transport Services' quarterly results. The transportation company said shipping volumes grew in the first quarter and rates rose. Its shares climbed 6.2 percent.
Bank of America also got a post-earnings boost after the lender recorded a larger profit, helped by corporate tax cuts and rising interest rates. Its shares rose 0.4 percent to $29.93.
A couple of gambling companies were among the big movers Monday. Carl Icahn's company struck a nearly $1.9 billion deal that would fuse the gambling and hotel operations of Tropicana Entertainment to Eldorado Resorts. Tropicana vaulted 26.8 percent to $69.75. Eldorado jumped 16.2 percent to $41.50.
Truck and engine maker Navistar International jumped 9.8 percent after Reuters news agency reported that Volkswagen may buy the company.
Traders sold shares in WPP, the world's largest ad agency, after its CEO, Martin Sorrell, resigned over an investigation into personal misconduct. Analysts say his departure could leave the company he founded three decades ago rudderless, but could also see parts sold off for higher value. The stock fell 4.7 percent.