4:09pm: Tech reverses last week's losses
The Dow closed Monday up 217 points, 0.6%, at 37,683, the Nasdaq Composite gained 320 points, 2.2%, to 14,844 and the S&P 500 rose 66 points, 1.4%, to 4,764. The small-cap Russell 2000 index improved 33 points, 1.7%, to 1,984.
Investors dove back into tech after the sector lost 4% last week.
“I think it’s still a new year, the same bull market with the same risk,” Adam Turnquist, chief technical strategist at LPL Financial, said, reported by CNBC. Losses last week gave investors “enough confidence to step back into tech."
Meanwhile, the Dow managed to eke out a winning day despite shares of component Boeing falling more than 8% after the FAA grounded hundreds of its planes following a fuselage incident.
12:00pm: Tech stocks rally but Boeing holds back Dow
Tech stocks rallied strongly on Monday although the fall in Boeing continued to hold the blue-chip Dow back.
At midday, the Dow Jones Industrial Average was down 58.41, 0.2%, at 37,407.70, the S&P 500 was up 28.62 points, 0.6%, at 4,725.86 and the Nasdaq Composite was up 187.40 points, 1.3%, at 14,711.47.
Michael hewson at CMC noted the weekend's incident at Boeing is the latest setback to hit the company as it looks to recover from the reputational damage to its 737-MAX fleet 5 years after the aircraft manufacturer was forced to ground the MAX 8 after 2 fatal crashes caused by flaws in the flight control software.
Hewson pointed out Spirit AeroSystems which manufactures the piece of the fuselage in question is also sharply lower, with the weekend incident putting both companies in the cross hairs of regulators across the world.
9:40am: Dow hit as Boeing slides, but tech rallies
Stocks were mixed on Monday with technology stocks holding firm, while heavy falls in Boeing sent the Dow lower.
Shortly after the opening bell, the Dow Jones Industrial Average was down 150.14 points, 0.4%, at 37,315.97, the S&P 500 was up 11.68 points, 0.3%, at 4,708.92 and the Nasdaq Composite was up 94.71 points, 0.7%, at 14,618.78.
Shares in Boeing fell 9.3% while Alaska Airlines declined 4.6%.
Aside from Boeing, investors will be looking ahead to the inflation figures and the start of the earnings season.
Joshua Mahony at Scope Markets said the commencement of the fourth quarter earnings season brings a fresh source of directional bias for markets, with traders watching closely for early signs over US consumption in the festive period.
This week will be dominated by the big banks, with many hitting long-term highs as concerns of a hard landing ease, he explained.
Elsewhere, Johnson & Johnson was little changed after it agreed to acquire clinical-stage biopharmaceutical company Ambrx Biopharma for $2.0 billion and shares in Axonics soared 20% after being bought by Boston Scientific in a $3.7 billion deal.
7:00am: Dow called lower, Boeing nosedives
Stocks are expected to make a weak start to proceedings with Boeing set to nosedive when trading opens.
In pre-market trading, futures for the Dow Jones Industrial Average were down 0.4%, while those for the S&P 500 were 0.1% lower and contracts for the Nasdaq 100 futures declined 0.1%.
Shares in Boeing are trading 8.4% lower in pre-market trading after US federal regulators temporarily grounded some 737 Max planes.
Investors are reacting to the news that an Alaska Airlines Boeing 737 Max 9 aircraft suffered a blowout that left a gaping hole in the side of the fuselage.
Shares in United Airlines are down 3% in pre-market trading, while Alaska Airlines are down 4.6%.
AJ Bell investment director Russ Mould said Boeing’s reputation has been “shattered” after the incident, which is the “latest in a string of problems” for the company.
“Safety is of paramount importance in the aviation sector and airlines using 737 Max planes will be thinking long and hard about their future aircraft requirements and how Boeing might play a smaller role, or none at all,” he said.
Elsewhere, investors will be looking ahead to this week’s inflation print as traders continue to speculate when the US central bank will start to lower interest rates, while US banks kick off the reporting season at the end of the week.
ING’s James Knightley notes markets are expecting the first Fed rate cuts in March this year, but he thinks it'll be later.
“The latest decent job figures suggest there's no need for an imminent reduction and it's one of the reasons why we think we'll be waiting until May,” he commented.