By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Dow Jones Industrial Average trades above record closing
high
U.S. stocks rose to records Monday aided by a jump in oil prices
and a pullback in the dollar.
The S&P 500 index rose 10 points, or 0.5%, at 2,192, trading
above its closing record and touching an intraday record of
2,193.84. Nearly all of the 11 main S&P 500 sectors were
trading in the green with energy leading gains, up 2%.
The Dow Jones Industrial Average gained 55 points, or 0.3%, to
18,922, while the Nasdaq Composite Index advanced 31 points, or
0.6%, to 5,353, setting its intraday record at 5,359.90.
"The path of least resistance in stocks at the moment is to go
higher, while this week is light on the news as well as shortened
by Thanksgiving holiday," said Maris Ogg, president at Tower Bridge
Advisors.
Ogg cautioned that people might be reading too much into
President-elect Trump's future economic policies, that have been
fueling the rally.
"Stocks have rallied since the election on a lot of talk and no
action so far, but it's a classic jump to conclusions that when
coupled with high valuations usually don't end well," Ogg said,
adding that it's prudent to be cautious about stocks.
Since Election Day and the surprise presidential election win
for Donald Trump, the Dow has climbed 2.9%, the S&P 500 has
gained 2%, and the Nasdaq has risen 2.5%.
A sharp rally in the dollar and 10-year Treasury yields last
week dampened the postelection stock rally on Friday.
But on Monday, the dollar eased slightly, with the ICE Dollar
Index , which measures the currency against a basket of six
currencies, down 0.2% to 100.96, while the 10-year Treasury yield
fell 4 basis points to 2.23%.
Investors also welcomed comments from Federal Reserve Vice Chair
Stanley Fischer
(http://www.marketwatch.com/story/feds-fischer-says-fiscal-policy-can-help-boost-productivity-and-lift-rates-2016-11-21),
who said fiscal policy can do more to help the economy--and even
lift interest rates.
Read: How Trump's latest potential hires could send the stock
market 'through the roof'
(http://www.marketwatch.com/story/how-trumps-latest-potential-hires-could-send-the-stock-market-through-the-roof-2016-11-21)
"It is becoming clear that market participants have digested the
Trump reality with most waiting for further news relating to
Trump's economic team which could provide additional clarity on how
he plans to lead the U.S. economy," said Lukman Otunuga, FXTM
research analyst in a note.
See:
A pause for reflection could come in a week where volume
traditionally thins out as traders head out for the Thanksgiving
Day holiday
(http://www.marketwatch.com/story/heres-when-markets-close-on-black-friday-2016-11-18).
Markets will shut Thursday and then close early on Black Friday,
the traditional kickoff to holiday shopping.
Read:Investors to digest stock market feeding frenzy before
their turkey
(http://www.marketwatch.com/story/investors-to-digest-stock-market-feeding-frenzy-before-their-turkey-2016-11-19)
Economic docket: The Chicago Fed national activity index
increased to -0.08 in October from -0.23 in September.
The bulk of the week's economic indicators are expected
Wednesday, which brings an update on durable-goods orders and the
minutes of the latest Federal Open Market Committee meeting.
Read:Trump's challenge: Get businesses to invest again
(http://www.marketwatch.com/story/trump-challenge-get-businesses-to-invest-again-2016-11-20)
Stocks to watch:Symantec Corp.(SYMC) has agreed to acquire
LifeLock Inc.(LOCK), a seller of identity-theft protection
services, for $2.3 billion in cash, The Wall Street Journal
reported
(http://www.marketwatch.com/story/symantec-to-purchase-lifelock-in-23-billion-cybersecurity-deal-2016-11-20),
citing a source. Shares of LifeLock jumped 14%.
Wal-Mart Stores Inc.(WMT) said Monday that it will offer its
Cyber Week sales several days early,
(http://www.marketwatch.com/story/wal-mart-unveils-plans-for-early-cyber-monday-2016-11-21)
starting Friday.
Facebook Inc.(FB) said it would hire an additional 500 employees
(http://www.marketwatch.com/story/facebook-will-expand-staff-by-500-in-uk-reports-2016-11-21)
in the U.K., according to media reports.
Tyson Foods Inc.(TSN) will report results ahead of the market's
open.
Australia's Boral Ltd.(BLD.AU) announced a $1.86 billion deal to
acquire Utah-based building products company
(http://www.marketwatch.com/story/australias-boral-buys-utah-based-headwaters-for-186-billion-2016-11-20)Headwaters
Inc. (HW). Boral said it wanted to increase exposure to "positive
momentum" being seen by the U.S. industry, driven by hopes for more
infrastructure spending by Trump. Headwaters shares rose 18% in
premarket.
Other markets:West Texas Intermediate crude-oil futures
(http://www.marketwatch.com/story/push-for-a-deal-ahead-of-opec-meeting-rallies-crude-prices-2016-11-21)
rose 2.7%, to $47.62 a barrel. The rise in oil prices came after
Russian President Vladimir Putin reportedly said Sunday that he was
optimistic about a output-cut deal at the Organization of the
Petroleum Exporting Countries meeting on Nov. 30. He also said his
country was ready to freeze production if asked.
"While loose terms may be agreed, I remain skeptical that a full
detailed agreement can be both achieved and carried out by OPEC
given the clear differences that are so evident between certain key
members," said Craig Erlam, senior market analyst at OANDA, in a
note to clients.
European stocks saw a largely flat open, while Asian finished
mixed
(http://www.marketwatch.com/story/asian-stocks-rise-on-encouraging-economic-news-2016-11-20).
Gold prices rose modestly, up $5.30, or 0.4%, while December copper
rose 5 cents, or 2.2%, to $2.5225 a pound.
(END) Dow Jones Newswires
November 21, 2016 09:59 ET (14:59 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.