Tech-heavy Nasdaq climbs 55 points
Dow finishes up 95 points
US oil prices push above $70 per barrel
By the closing bell, US indices had lost ground, but still managed to close higher after President Trump took the shine off of the market's early advance when he tweeted that he would come to a decision on whether to withdraw from the Iran nuclear deal on Tuesday.
I will be announcing my decision on the Iran Deal tomorrow from the White House at 2:00pm.
— Donald J. Trump (@realDonaldTrump) May 7, 2018
By the market's end, the Dow had risen 95 points to close at 24,355, but had forfeited much of its gains earlier in the day when it rose by more than 200 points.
The S&P 500 finished up 9 points at 2,673, meanwhile, and the tech-heavy Nasdaq climbed 55 points to 7,265. In Toronto, the TSX added 69 points to 15,798.
Trump’s tweet knocked back an earlier run for energy stocks, which had spent much of the trading session climbing along with the oil price – which jumped above $70 per barrel for the first time since November of 2014 on concerns about the oil supply from Iran and Venezuela.
By the close, the S&P 500 Energy sector had inched up just 0.18% at 545.84.
The tech sector, meanwhile, fared better, led higher by Microsoft and Apple, with the S&P 500 Information Technology sector index jumping 0.8% to 1,194.
On the list of stocks powering the S&P 500 higher was Illumina Inc, which climbed 4.9% after Barclays upgraded the stock to Overweight from Equal Weight and raised its price target on the stock to US$300.
Medtronic PLC also finished up 4.6 % after the medical technology group poached a JP Morgan analyst as its senior vice-president for strategy.
Over on the Nasdaq, the chip maker Nvidia ended 4 per cent higher after Bank of America Merrill Lynch reiterated its buy rating on its shares.
High on the roll call of laggards, meanwhile, was International Flavors & Fragrances Inc. The stock shed 10.7% after the company agreed to buy Israeli flavours and ingredients maker Frutarom for US$7.1bn in a cash and stock transaction.
Shares in the IT services firm Cognizant also finished down 5.2% after it lowered its forecast for annual earnings as it now expects to pay more in taxes than anticipated.
Afternoon trade:
US stocks punched nearly 1% higher in afternoon trade in New York on Monday, buoyed by a rally in energy and technology stocks.
The Dow Jones added 166 points to 24,428, while the tech-heavy Nasdaq gained 77 points to 7,286.
Energy stocks continued to get a boost from crude oil prices, with Chevron and Exxon giving the biggest boosts to the Dow.
Chevron Corp. (NYSE:CVX) added1.3% while Exxon Mobil Corp. (NYSE:XOM) was up 1,7% to US$78.18 on Monday.
First-quarter earnings season remains in focus, though the vast majority of S&P 500 companies have already posted their results.
Shares of Nvidia Corp. (NASDAQ:NVDA) soared over 4% to US$248 after Bank of America Merrill Lynch reiterated its buy rating for Nvidia shares, citing its product leadership in the gaming business.
Both the S&P and the Nasdaq were set for their second straight positive session, while the Dow could post a third.
Morning trade:
US benchmarks opened higher across the board on Monday as investors added to the stock market rally seen last Friday.
A half-an-hour into the trading session, the Dow Jones added 212 points to 24,473, led by Caterpillar, Exxon Mobil and Chevron, while the S&P 500 was up 17 points at 2,680 and the tech-heavy Nasdaq gained 55 points to 7,265.
Up in Toronto, the TSX added 107 to trade at 15,837.
US oil prices also pushed above the $70 per barrel marker as concerns grew about the future direction of the Iran nuclear deal and the situation in Venezuela.
Separately, shares in Nestle inched up 1.62% while shares in Starbucks rose 0.6% after Nestle agreed to pay US$7.15bn to the coffee purveyor for the rights to sell its products around the world.
Elsewhere, the stock of Gramercy Property Trust jumped by 15.5% after Blackstone reached a deal to buy it for US$7.6bn in cash.
Pre-market trade:
US stocks were tipped to start the week by opening higher and keeping up the momentum generated by Wall Street’s Friday rally, which saw the Dow rise 332 points.
The S&P 500 is poised to open 10 points higher, according to the futures market, while the tech-heavy Nasdaq is tipped to rise by as much as 40 points at the opening bell. The Dow Jones, meanwhile, looks set to add as much as 83 points.
While projected to remain in positive territory, US markets may well be subdued today as European markets are up only slightly in early afternoon trade and UK markets are closed for a holiday.
Pushing up shares of Starbucks by 3% in the pre-market session is an agreement this morning which will see Nestle pay US$7.2bn for the privilege of selling and distributing Starbucks’ products.
Also drawing attention are shares in Berkshire Hathaway, which are up 1.93% in the wake of the company’s much-watched meeting in Omaha, Nebraska last Saturday.
In related news, Apple shares are also up 3.92% after Warren Buffett, Berkshire Hathaway’s founder, said over the weekend that he would buy more Apple shares at the right price, days after disclosing that Berkshire had bought 75m additional Apple shares in the first quarter.
Elsewhere, US crude oil futures are up by as much as 1%, reaching $70 per barrel for the first time since 2014 as worries grow that President Trump will pull out of the 2015 nuclear deal with Iran, which has kept Iranian oil exports at a steady level.
Discussions about Iran remain in play as President Trump is expected to decide whether to pull out of the Iran deal before May 12.
A round of corporate earnings reports are expected today including Sysco, Zillow, AMC Entertainment, Cognizant Technology, EW Scripps and Gannett.