US shares ended higher on Monday, with investors brushing asode the outcome of the Italian referendum and instead lapping up a rally in the shares of financial and energy companies which pushed the Dow Jones Industrial Average to a fresh record high.
The price-weighted Dow, which gives companies with a higher share price more weight in the index, ended the day 0.2% higher at 19,216.24. The index had also hit a fresh intraday high earlier in the trading session but pared its gains towards the end of the day.
Oil stoks fared well after the fuel swung between losses and gains as OPEC, which last week agreed to its first supply cut since the downturn in crude began in mid-2014, readied to meet with non-members like Russia, Kazakhstan, Azerbaijan and Bahrain in Vienna for additional cuts.
Meanwhile, the market bellwether S&P 500 climbed 0.6% to 2,204, while the Nasdaq Composite surged 1% to 5,308.
The top riser in the S&P 500 was Alcoa Corporation (NYSE:AA), up 7.5% to $31.22.
The S&P Midcap 400 closed up 1.1% at 1642 and led by 3D Systems Corp (NYSE;DDD), up 9.9% at $14.88, while the S&P Smallcap 600 ended up an impressive 1.8% at 824 and led by Tidewater Inc (NYSE:TDW), up 22.1% at $3.21.
The wider small-cap Russell 2000 ended up 1.8% at 1337, also led by Tidewater.
Meanwhile, in Toronto the TSX Composite closed up 0.3% at 15,095.
Open
US stocks opened higher on Monday , buoyed by higher oil and brushing off turmoil in Italy following the Eurozone country’s referendum at the weekend.
The market bellwether S&P 500 was up 0.4% at 2201, as it extended from Friday but still off the 2213 record high reached on Nov. 25. The S&P 500 was down on the week – the first time since Donald Trump’s election victory on Nov. 9.
Oil prices extended gains from last week’s historic OPEC supply cull agreement and were up 0.7% to $52.02. Earlier, it marked $52.42 its highest since mid July.
Oil stocks dominated S&P 500 gainers, with Chesapeake Energy (NYSE:CHK) top with a 2.9% gain to $7.44 and Southwestern Energy (NYSE:SWN) up 2.5% to $11.97 and second.
The S&P Midcap 400 was up 0.6% to 1634 and led by oil group Noble Corp (NYSE:NE) up 3.2% to $6.37.
The S&P Smallcap 600 was up 0.8% to 815 and led higher by sports goods retailer Big 5 Sporting (NASDAQ:BGFV), up 5% to $18.95 after Zacks said “analysts are becoming more optimistic on BGFV’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Big 5 Sporting Goods could be a solid choice for investors.”
S&P 500 futures had fallen as much as 0.6% overnight after Italians voted “no” in a constitutional referendum and Prime Minister Matteo Renzi offered to resign, throwing one of the eurozone’s biggest economies into political and financial turmoil.
But the S&P 500 market bellwether reversed direction as investors now expect Renzi’s departure to usher in a more technocratic government. Even European stocks managed to make light gains this session.
Pre-Open
US stocks are expected to open higher on Monday as further gains in the price of crude oil outweighed a jolt of political uncertainty sparked by Italy’s weekend referendum.
S&P 500 futures had fallen as much as 0.6% overnight after Italians voted “no” in a constitutional referendum and Prime Minister Matteo Renzi offered to resign, throwing one of the eurozone’s biggest economies into political and financial turmoil.
But the S&P 500 market bellwether was now indicated to open 0.3% higher as investors now expect Renzi’s departure to usher in a more technocratic government. Even European stocks managed to make light gains this session.
Brent crude ticked up by 0.6% to $54.76 a barrel, adding to gains of more than 12% last week in the wake of OPEC’s declaration to cut oil supply by an as-expected 1.2mln barrels a day by the cartel. West Texas Intermediate, the US benchmark, rose by the same margin to $51.97.
Among stocks indicated to do well on Monday is energy company Chesapeake Energy Corp (NYSE:CHK) up 3.7% $7.50 pre-market.
Traders will get a look at how the US services sector fared last month when the Institute for Supply Management’s November PMI is released at 1000 ET (1500 GMT). The sector is responsible for the bulk of US employment, and the data could take on added significance after a muddy November jobs report, released on Friday which saw Wall Street stocks end firm but weaker on the week for the first time since Donald Trump’s Presidential election victory on Nov. 9.
Another stock faring well before the bell is McDonald's (NYSE:MCD), up 1.2% to $119.61. Broker Nomura upgraded the restaurant chain's stock to "buy" from "neutral," saying the issue of tough U.S. comparable sales will subside and that it is enthusiastic about the company's planned menu updates.