Dow jones 20894 plus 90
S&P 500 2394 plus 12
DAX 12619 minus 12
FTSE7496 plus 25
OIL 51.04 plus 0.37
GOLD 1260 plus 7.50
AUD 0.7476
SPI Futuresplus 9
heavens to Murgatroyd.........Exit stage left
U.S. stocks on Monday tried to claw back from last week’s sharp loss, as Wall Street’s long-term uptrend appeared mostly intact, albeit, on weaker-than-average volume.
More pronounced gains from near-record levels, however, may be hard to achieve amid continued White House uncertainty.
The Dow Jones Industrial Average DJIA, +0.43% rose 89 points, or 0.4%, to 20,895, led higher by more than 1% gains in Cisco Systems Inc.CSCO, +1.22%Boeing Co.BA, +1.61% and 3M Co.MMM, +1.38%
The S&P 500 index SPX, +0.52% rose 11 points to 2,392, a gain of 0.5%. The day’s gains were broad-based, with 10 of the 11 primary S&P 500 sectors rising on the day. The industrials sector rose 0.6% as defense stocks advanced on an arms deal with Saudi Arabia, bested only by tech, up 0.8%, and utilities, up 0.9%.
The Nasdaq Composite Index COMP, +0.82% rose 39 points, or 0.6%, at 6,122.
All three benchmarks are coming off a weekly decline, but are on track to advance for three straight positive trading sessions since the market’s sharpest decline in months last Wednesday.
With the bulk of earnings season over, investors will scrutinize U.S. political news, like the one last week that triggered a sharp midweek plunge for stocks. President Donald Trump traveled to the Middle East this weekend and delivered a speech with Israeli Prime Minister Benjamin Netanyahu on Monday. Read:In the battle for control of the stock market, bulls may have an edge
That midweek dip was driven by reports that Trump asked then-Federal Bureau of Investigation Director James Comey to stop an investigation into Russian meddling into the U.S. election. And it has sown doubt that Trump will be able to push through a pro-economic-growth agenda seen as driving recent gains for stocks.
It isn’t taking much to push around stocks Monday with volumes being extremely low, said Sahak Manuelian, managing director of equity trading, in an interview.
“Volumes are terrible across the board,” Manuelian said. “I think there’s just a lack of market participation within this rally.”
At last check, composite volume on the New York Stock Exchange was just over 1.67 billion shares, and about 956 million shares on the Nasdaq, with less than three hours of trading left in the session. Average daily trading volume for the year to date has been 3.53 billion shares on the NYSE, and 1.86 billion shares on the Nasdaq, according to Dow Jones data.
Investors will this week try to whether that selloff was temporary or a “signal of something more sinister,” said Michael Stanes, investment director at Heartwood Investment Management, in a note Monday. Read:This chart shows how stocks aren’t breaking down—but not breaking out, either
He argued, though, that gains for stocks after the presidential election are also due to improved global economic conditions and fading disinflationary effects that started in summer 2016. The fundamental backdrop hasn’t changed, with the U.S. economy still on a solid footing and other global economies steady, said Stanes.
“We recognize that we are in the latter part of the market cycle and sentiment is likely to remain vulnerable to pressure points as we move through the year,” he said.
Fed speakers ahead: On a quiet day for data, the Chicago national activity index was at a three-year high of 0.49 in April, compared with 0.07 in March. Read:Buoyant U.S. economy rides out rough political sea, but more storms ahead
Two Fed speakers are lined up to speak after the market closes on Monday. Fed Gov. Lael Brainard speaks on “the roles of opportunity and inclusion in strengthening the U.S. economy” in Minneapolis at 7:30 p.m. Eastern. Then Chicago Fed President Charles Evans gives a speech on the economy at an OTC derivatives conference in Shanghai, China, at 9:10 p.m. Eastern.
