MARKET REPORT Energy, tech stocks power gains
U.S. stocks closed modestly higher Monday, extending the market’s gains from last week.
Technology companies and banks accounted for much of the latest gains, outweighing losses among beverage makers and other consumer goods companies.
“Geopolitical risk has cooled a little bit and economic data, even if it isn’t accelerating as fast as it was a month ago, is still accelerating,” said Karyn Cavanaugh, senior markets strategist at Voya Investment Management. “The last couple of days are showing that investors are getting their sea legs back.”
The S&P 500 index rose 9.21 points, or 0.3 percent, to 2,672.63. The Dow Jones industrial average gained 94.81 points, or 0.4 percent, to 24,357.32. The Nasdaq added 55.60 points, or 0.8 percent, to 7,265.21. The Russell 2000 index of smaller-company stocks picked up 13.34 points, or 0.9 percent, to 1,578.95.
Trading got off to a solid start early Monday, as investors weighed the big move in energy futures.
Crude oil prices have been rising as investors weigh heightened geopolitical risks in the Middle East, a push by the Organization of Petroleum Exporting Countries to lower oil production and strong worldwide demand amid a global economic expansion.
Benchmark U.S. crude rose $1.01, or 1.4 percent, to settle at $70.73 a barrel in New York. Brent crude, the international standard, gained $1.30, or 1.7 percent, to close at $76.17 a barrel in London.
Technology companies accounted for a big slice of the S&P 500’s gains. Nvidia led the sector, rising 4 percent to $248.68. Financial sector stocks also racked up solid gains. Morgan Stanley added 1.9 percent to $52.39. Walgreens Boots Alliance slumped 2.4 percent to $62.30, the biggest decliner in the sector that includes food, beverage and other consumer goods companies.
After a couple of weeks of choppy trading, the market got a lift Friday from government data showing hiring continued at a solid clip in April, the latest evidence that the U.S. economy remains resilient despite some jitters about a possible trade war.
Corporate earnings, meanwhile, have also been a source of good news for investors.
Roughly 80 percent of the companies in the S&P 500 have reported results so far this earnings season, and some 62 percent of those have delivered both earnings and revenue that exceeded financial analysts’ expectations, according to S&P Global Market Intelligence.
“The market doesn’t seem quite as skeptical about the future prospects as maybe it was a couple of weeks ago,” Davidson said.
Bond prices were little changed. The yield on the 10-year Treasury held at 2.95 percent.
Gold slipped 60 cents to $1,314.10 an ounce. Silver dropped 2 cents to $16.50 an ounce. Copper lost a penny to $3.08 a pound.