By Anora M. Gaudiano and Victor Reklaitis, MarketWatch
Russell 2000 climbs
U.S. stock-market indexes followed global equities higher on
Monday as investors appeared to shrug off earlier worries about
political uncertainty in Germany, returning their focus to
corporate earnings and prospects for tax cuts.
Trading volumes are likely to gradually thin out this week,
given the run-up to Thanksgiving Day on Thursday and an abbreviated
session on Friday.
What are the main benchmarks doing?
The S&P 500 was up 2.8 points, or 0.1%, at 2,581 with six of
the 11 main indexes trading higher. Telecoms, industrials and
financials were leading the gains, outweighing losses in
health-care and energy shares.
The Nasdaq Composite added 5 points, or 0.1%, to 6,788. Gain on
the Nasdaq were capped due to a selloff in biotechnology shares,
which fell 0.8%.
The Dow Jones Industrial Average added 92 points, or 0.4%, to
23,450. Home Depot Inc(HD) and 3M Company (MMM) were leading the
gains, up about 1.7%. Merck & Co (MRK) and General Electric
Co.(GE) were the biggest losers, down 2.2% and 1.6%
respectively.
Modest gains on Monday come after two consecutive weeks of
losses for the main indexes.
What are strategists saying?
"The consensus trade on Wall Street has been buying European
equities versus U.S. equities, but that's on the condition that
Europe is politically stable. When Merkel could not get her
coalition, there was a short-lived flight to quality," said Diane
Jaffee, senior portfolio manager at TCW.
Jaffee noted that with bond yields so low or negative in some
cases, equities are still attractive for many investors.
"Earnings growth, especially revenue growth continues to support
U.S. equities," Jaffee said.
See:This green-energy stock is getting whacked by tax-reform
fears--here's how to play it
(http://www.marketwatch.com/story/this-green-energy-stock-is-getting-whacked-by-tax-reform-fears-heres-how-to-play-it-2017-11-20)
Which stocks look like key movers?
Shares in Cavium Inc.(CAVM) jumped 8% following news that
Marvell Technology Group Ltd.(MRVL) has signed a deal to buy the
fellow chip maker for about $6 billion
(http://www.marketwatch.com/story/caviums-stock-surges-after-marvells-buyout-bid-in-a-deal-valued-at-6-billion-2017-11-20).
Marvell 's stock was roughly flat .
Alibaba Group Holding Ltd.'s stock (BABA) gained 2% after the
e-commerce giant said it would buy a 36% stake in Chinese big-box
retailer Sun Art Retail Group Ltd. (6808.HK) for $2.9 billion
(http://www.marketwatch.com/story/alibaba-to-buy-29-billion-stake-in-chinese-hypermarket-chain-2017-11-20).
Shares of Delphi Automotive PLC(DLPH) rose 3.6% after analyst at
Bank of America upgraded the stock to buy from neutral.
Cardinal Health Inc(CAH) shares dropped 2% after analysts at
Morgan Stanley cut the stock to underweight from equal-weight.
What economic data are due?
The leading economic index surged
(http://www.marketwatch.com/story/us-economy-stays-strong-leading-indicators-surge-in-october-2017-11-20)1.2%
in October and suggested no letup in a steadily growing U.S.
economy with the end of the year fast approaching.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Read:Fed speeches show readiness to raise rates next month,
wariness about recession
(http://www.marketwatch.com/story/fed-speeches-show-readiness-to-raise-rates-next-month-and-a-wariness-about-next-recession-2017-11-17)
What are other assets doing?
The euro tumbled toward the $1.17 level
(http://www.marketwatch.com/story/euro-plummets-as-uncertainty-in-germany-rattles-markets-2017-11-19)
early Monday after German governmental coalition talks broke down
(http://www.marketwatch.com/story/merkels-future-in-doubt-as-german-coalition-negotiations-break-down-2017-11-19)
on Sunday, keeping the country's government in limbo and casting
doubt over Chancellor Angela Merkel's future as leader.
Read:Germany's Merkel would prefer new election over minority
government
(http://www.marketwatch.com/story/germanys-merkel-would-prefer-new-election-over-minority-government-2017-11-20)
The Stoxx Europe 600 index was higher, while the German DAX 30
index also gained after erasing morning losses
(http://www.marketwatch.com/story/european-stocks-stage-recovery-in-wake-of-german-political-uncertainty-2017-11-20).
In Asian trading hours, the Nikkei
(http://www.marketwatch.com/story/euro-slides-dragging-down-asian-stock-markets-2017-11-19)
dropped 0.6% after the euro's slide pushed up the yen , considered
a haven in times of economic and political uncertainty.
Oil futures and gold prices drifted south, down more than
1%.
Don't miss:The euro still 'can break higher'--analysts react to
Germany's political uncertainty
(http://www.marketwatch.com/story/the-euro-still-can-break-higher-analysts-react-to-germanys-political-uncertainty-2017-11-20)
Barbara Kollmeyer contributed to this report.
(END) Dow Jones Newswires
November 20, 2017 12:12 ET (17:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.