US stocks ended higher on Monday, but geopolitical factors across Europe blighted the second half of the session.
The S&P 500 market bellwether finished up 0.2% at 2262, recovering from being up just 0.1% after an attack on a Berlin Christmas market, violence in Zurich and the assassination of the Russian ambassador in Ankara, brought tragedy ahead of the holiday season back and pared equity market gains from as high as up 0.4% midsession.
The top gainer on the S&P 500 was NRG Energy (NYSE:NRG) up 4.5% to $12.86.
The S&P Midcap 400 was up 0.6% at 1677 and led by cosmetics giant Avon Products (NYSE:AVP), up 5.4% to $5.62.
The S&P Smallcap 600 ended up 0.5% at 845 and led by Calamos Asset Management (NASDAQ:CLMS) up 14% at $8.39 after the founders agreed to buy back the business.
Across the border, Toronto’s TSX Composite closed up 0.1% at 15,269.
Early trading
US shares opened higher on Monday but failed to test fresh record highs. At least Lam Research stock was able to scale record highs on news of its own.
The S&P 500 market bellwether was up 0.2% at 2262. Although not itself testing any fresh record highs at least its leader semiconductors company Lam Research Corporation (NASDAQ:LRCX) up 3.2% up $107.79, and struck a record high of $108.60 after brokers at Goldman Sachs upgraded the stocks from a “neutral” rating to a “conviction-buy” rating in a report issued on Monday.
The S&P Midcap 400 was up 0.3% at 1672 and led by corporate payment solutions provider Wex Inc (NYSE:WEX) up 3.9% at $114.33 after broker Citi initiated coverage at a “neutral” rating and a $120.00 price target on the stock. Citigroup Inc.’s target price would suggest a potential upside of 9.04% from the company’s previous close. Meanwhile, Chevron U.S.A. Inc. (NYSE:CVX), has announced it has signed a long-term agreement with WEX Bank, a subsidiary of Wex Inc.
The S&P Smallcap 600 was up 0.09% at 842 and led by Calamos Asset Management (NASDAQ:CLMS) after John Calamos, the founder of Calamos Investments LLC, the operating company of CAM, and CAM's Chairman, and John Koudounis, the Chief Executive Officer of CAM agreed to buy out the company.
Calamos shares were up 12.5% at $8.28.
Although the US Markit Services PMI flash estimate for December was weaker than expected at 53.4 versus a forecast 55.2 but remained in expanding mode.
Now that markets have missed their momentum to test new record highs, market focus now turns squarely on a speech from Federal Reserve Chair Janet Yellen at the University of Baltimore at 1330 ET (1830 GMT) which may shed light on the path of future rate hikes.
Pre-Open
US stocks are set to open firmer on Monday, putting behind them an awkward end to the week.
On Friday, the chance to see fresh record highs petered out as investors began to dwell on how much monetary tightening to expect in 2017 following the highly-trailed mid-week rate hike from the Federal Reserve and the prospect of reflation under the new Donald Trump administration from January.
We may not have long to wait. Federal Reserve Chair Janet Yellen is scheduled to give a speech about the state of the American job market at 1330 ET (1830 GMT) at the University of Baltimore.
Yellen may offer more clues about how much central bank support the labor market might need. Investors are trying to gauge how far interest rates may rise in 2017 after the Fed hiked rates last week.
The S&P 500 was indicated opening 0.08% higher.
But is this the week the Dow Jones industrial average hits 20,000 points? It's currently sitting at 19,843 following a month of record leaps following the election of pro-business Trump as President.
Shares in Nintendo (OTC:NTDOY) dropped 7.7% to $27.11 on Friday following underwhelming reviews for the new game, Super Mario Run. Expected to fall further on Monday.
Apple (NASDAQ:AAPL) is in focus as it launches an attack on the European Union's record $14bn tax ruling. Pre-market the shares were down 0.1% to $115.85.
Apple says European officials singled the company out for a massive tax bill as "a convenient target because it generates lots of headlines."
Canadian insurance firm Fairfax Financial Holdings (TSE:FFH) has announced a $4.9bn deal to take over the Swiss insurance firm Allied World Assurance (NYSE:AWH). Allied, the dual-listed stock, was indicated up 15.80% at $53.00 pre-market.
The cash and stock deal offers an 18% premium over where Allied World shares closed on Friday.
In data, the US Markit Composite and Services Flash estimate for Dec is due at 1445 GMT. The services component is forecast to be 55.2. Any figure above 50.0 indicates growth.