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U.S. stocks rose in midday trading on Monday, as a rise in the price of crude oil lifted energy stocks.
How are the main benchmarks performing?
The Dow Jones Industrial Average rose 178 points, or 0.7%, to 24,439. The S&P 500 added 16 points to 2,679, a gain of 0.6%. The Nasdaq Composite Index rose 56 points, or 0.8%, to 7,266.
Both the S&P and the Nasdaq were set for their second straight positive session, while the Dow could post a third, including a gain of 0.02% on Thursday. Monday’s advance built on a sharp rally in Friday’s session, which was the largest for the Dow since April 10.
The day’s gains were broad, with seven of the 11 S&P 500 sectors higher on the day. Energy was by far the biggest gainer, up 2.2%.
What’s driving markets?
Global trade headlines will also be in focus for investors, after a team of U.S. negotiators appeared to garner no deal out of talks with counterparts in Beijing. China state media indicated that talks were positive, and more negotiations would be needed to avoid a trade war, the South China Morning Post reported.
A trio of Fed members are slated to speak on Monday, which could give further clues to the direction of interest rates. Richmond Federal President Tom Barkin is scheduled to speak at George Mason University in Fairfax, Va., at 2 p.m. Eastern Time.
Chicago Federal Reserve Bank President Charles Evans and Dallas Fed President Robert Kaplan will both speak at the 23rd Annual Financial Markets Conference in Amelia Island, Fla., at 3:30 p.m. Eastern.
What are strategists saying?
“We’re waiting on more clarity about the Iran deal. If Trump pulls out, which other leaders have urged him not to do, then supply will be cut, which will have the same impact as rising demand in terms of driving up prices. But even beyond that, we’re entering the summer driving season and the energy sector has been down for so long that it looks poised for a rebound,” said Mark Martiak, senior wealth strategist at Premier Wealth/First Allied.
“Beyond that, there are no obvious catalysts on the horizon, which leaves more room for geopolitical risk to impact trading. I think valuations are fair, but I also expect we’ll see a lot more volatility going forward.”
Which stocks are in focus?
Energy stocks rose broadly alongside the gain in oil. Chevron Corp. added 1.5% while Exxon Mobil Corp. gained 2.7%. ConocoPhillips was up 2.3%.
First-quarter earnings season remains in focus, though the vast majority of S&P 500 companies have already posted their results.
Tyson Foods Inc. reported quarterly earnings and sales that missed analyst forecasts. Shares rose 0.3%.
Sempra Energy unexpectedly reported a drop in its first-quarter revenue. Adjusted earnings also came in below forecasts. The stock fell 0.7%.
Sysco Corp. climbed 3.7% after it reported earnings that came in above expectations.
Cognizant Technology Solutions Corp. sank 5.4% after it provided an outlook that was below expectations.
Starbucks Corp. rose 0.1% after Nestlé SA said it has reached a deal to market the coffee chain’s consumer and food service products. Starbucks will receive a $7.15 billion upfront payment as part of the deal.
Athenahealth Inc. jumped 18% after CNBC reported that Elliott Management plans to make a $7 billion bid for the company.
Gramercy Property Trust surged 15.5% after the commercial real-estate asset management company said it would be acquired by Blackstone Group LP in a cash deal valued at $7.6 billion.
Shares of International Flavors & Fragrances Inc. fell 6.7% after announcing a $7.1 billion stock-and-cash deal to acquire Israel-based Frutarom Industries, Ltd.
Shares of Berkshire Hathaway Inc. rose 0.3% after the multinational conglomerate said over the weekend it swung to a rare loss in the first quarter due to lower insurance premiums and an accounting rule change.
At the Berkshire shareholder meeting on Saturday, chairman Warren Buffett commented on a range of topics. He applauded Apple Inc.’s share buybacks, defended a stake in Wells Fargo & Co. and explained why he doesn’t invest in Microsoft Corp. shares. He said bonds are a ‘terrible investment’ near current yields and cryptocurrencies “will come to bad endings.”
What are other markets doing?
European stocks climbed, while Asian stocks finished mostly higher.
The ICE Dollar Index climbed to a four-month high, up 0.3%. Gold prices were modestly lower, down 0.1%.