4:11pm: 3M shares rise on settlement report
The Dow closed Monday up 213 points, 0.6%, at 34,560, the Nasdaq Composite added 114 points, 0.8%, to 13,705 and the S&P 500 improved 28 points, 0.6%, to 4,433. The small-cap Russell 2000 index gained 17 points, 0.9%, to 1,871.
The benchmarks, including the tech sector, made up some ground in reversing what has been a tough August for markets. Apple shares rose 0.9%, Meta added 1.7% and Nvidia jumped 1.8%.
Meanwhile, 3M stock rallied 5% on reports that the company planned to settle lawsuits alleging some of its earbuds were faulty.
Investors are also looking ahead to a busy week of economic data, including job openings and consumer confidence Tuesday morning.
12:05pm: Cyclicals lead a broad-based advance for equities
US stocks were higher in noon trading as investors brace for key inflation and employment data to be released later this week.
At midday, the Dow rose 183 points to 34,530 while the S&P 500 added 15 points at 4,421 and the tech-heavy Nasdaq gained 50 points to 13,641.
“Today is much more of a cyclical lift versus tech, and I think that’s just from stronger-than-expected growth outside of the US,” Certuity co-chief investment officer Dylan Kremer said.
Notable movers included shares of 3M Co (NYSE:MMM), which climbed 5% following media reports the company was ready to settle lawsuits alleging some of its earplugs were faulty.
10:45am: The week ahead: another round of employment gains
With Jackson Hole in the rearview, the market's attention comes back to the data on growth, employment and inflation.
Momentum in those three should give investors an idea of what's ahead for monetary policy and financial markets.
"The next major macro marker looks likely to be the August employment report, released on Friday," analysts at UBS noted. "We expect seasonal adjustment to flatter the headline gain in nonfarm payroll employment, but we also project a below consensus gain in average hourly earnings and uptick in the unemployment rate in August."
9:45am: 3M reaches settlement, Xpeng to acquire Didi
US stocks moved higher at the open on Monday as investors digested another batch of earnings reports ahead of key economic data due to be released later this week.
Just after the opening bell, the Dow Jones had added 0.7% or 247 points at 34,594 points, the Nasdaq had gained 0.7% or 95 points at 13,687 points, and the S&P 500 was up 25 points or 0.6% at 4,431 points
Major movers included 3M Co (NYSE:MMM), which had added 5.7% on reports it has reached a tentative $5.5 billion settlement for a series of lawsuits about allegedly faulty earplugs it sold to the US military.
Tesla Inc (NASDAQ:TSLA) rival Xpeng Inc (NYSE:XPEV) added 2.3% to US$17.94 on the news it plans to purchase ride share app Didi.
7:00am: Positive start likely
US stocks are expected to open higher after China kicked off a week packed with economic data with measures aimed at stimulating its stock markets.
Futures for the Dow Jones Industrial Average (DJIA) rose 0.2% in Monday pre-market trading, while those for the broader S&P 500 index gained 0.1% and contracts for the Nasdaq-100 were up 0.2%.
“The week started upbeat in China and in Hong Kong, after the government announced measures to boost appetite for Chinese equities,” commented Swissquote Bank senior analyst Ipek Ozkardeskaya.
“Beijing halved the stamp duty on stock trades, while Hong Kong said it plans a task force to boost liquidity.”
The CSI 300, which tracks the top 300 stocks on the Shanghai and Shenzhen stock exchanges, rallied more than 2% and Hong Kong’s Hang Seng jumped more than 1.5%.
The main US indexes ended higher on Friday, with the S&P and Nasdaq snapping three-week losing streaks, despite Federal Reserve chairman Jerome Powell suggesting more rate hikes could be on the way during a speech at the Jackson Hole Economic Symposium.
This week will be busy with some important economic data from the US, Ozkardeskaya noted.
“We will watch JOLTS job openings tomorrow, Australian and German CPIs and US ADP and GDP reports on Wednesday, to see if the US economy continues to be strong, and the jobs market continues to be tight,” she added.
“On Thursday, Chinese PMI numbers, the Eurozone’s CPI estimate and the US core PCE will hit the wire, and on Friday, we will watch the US jobs report and ISM numbers. Note that the US dollar index pushed to the highest levels since May after Powell’s Jackson Hole speech.”
Contact the author at stephen.gunnion@proactiveinvestors.com