By Mark DeCambre and Victor Reklaitis, MarketWatch
Roku shares trade more than 11% lower after soaring in their
debut last week
U.S. stock benchmarks closed at all-time highs on Monday
afternoon, as equities resumed a steady run-up that could set the
tone for the final three months of 2017. Four main benchmarks set
records: the S&P 500 index, the Dow, the Nasdaq and the
small-cap Russell, shaking off a mass shooting in Las Vegas that
President Donald Trump described as "an act of pure evil
(http://www.marketwatch.com/story/trump-today-president-says-hell-visit-las-vegas-in-wake-of-pure-evil-mass-shooting-2017-10-02)."
What are the stock benchmarks doing?
The S&P 500 index advanced by 9.76 points, or 0.4%,
finishing at a record 2,529.12, powered by gains in the health-care
and financials sectors, up 1% and 0.9%, respectively. The Dow Jones
Industrial Average added 152.51 points, or 0.7%, to a fresh
all-time peak at 22,557.60, supported by gains in 3M Co. (MMM) and
Goldman Sachs Group Inc. (GS).
The Nasdaq Composite Index , meanwhile, tacked on 20.76 points,
or 0.3%, to 6,516.72. The Russell 2000 Index also carved out a
record, up 1.3% at 1,509.47.
What are strategists and traders saying?
"l think what's driving the market is just optimism about the
fourth quarter, along with expectations that results from the third
quarter will be similar to the second quarter," said Robert Pavlik,
chief market strategist at Boston Private Wealth. He also said hope
that the Trump administration will rework tax policy is supporting
buying appetite, although doubts linger about that coming to
fruition this year.
"The continued talk [about taxes] that's all that really
matters, but I don't think that anything gets voted on and passed
this year," he said.
Read more:Will the stock market live up to the 4th quarter's
reputation for strength?
(http://www.marketwatch.com/story/will-the-stock-market-live-up-to-the-4th-quarters-reputation-for-strength-2017-09-30)
Which stocks are in focus?
Shares in MGM Resorts International(MGM) dropped 5.6%
(http://www.marketwatch.com/story/mgm-resorts-stock-falls-5-premarket-after-mandalay-bay-shooting-2017-10-02)in
the wake of a mass shooting at the company's Mandalay Bay property
in Las Vegas. A gunman opened fire
(http://www.marketwatch.com/story/reports-of-dead-injured-after-mass-shooting-at-las-vegas-concert-2017-10-02)
on a crowd at an outdoor country-music concert in Las Vegas on
Sunday night, leaving at least 58 people dead and more than 500
injured.
Gun-maker shares were active in Monday trade
(http://www.marketwatch.com/story/gun-maker-stocks-surge-after-mass-shooting-in-las-vegas-2017-10-02).
Smith & Wesson parent American Outdoor Brands Corp.'s(AOBC)
stock jumped 3.2%, while Sturm, Ruger & Co. Inc. stocks (RGR)
climbed 3.5%. Vista Outdoor Inc., shares(VSTO) were 2.4%
higher.
Streaming-media company Roku Inc.'s stock traded 11.2% lower.
The new issue surged in its trading debut Thursday, then jumped
again Friday.
See:Roku IPO valuation nearly doubles in two sessions
(http://www.marketwatch.com/story/roku-ipo-valuation-doubles-in-less-than-two-sessions-2017-09-29)
And read: Wall Street's embrace of Roku ignores the ghosts of
GoPro, Fitbit IPOs
(http://www.marketwatch.com/story/wall-streets-embrace-of-roku-ignores-the-ghosts-of-gopro-fitbit-ipos-2017-09-29)
Software giant Oracle Corp.'s stock (ORCL) gained after Chairman
Larry Ellison guaranteed late Sunday to offer database warehousing
at less than half the price
(http://www.marketwatch.com/story/oracles-ellison-guarantees-database-warehousing-at-half-the-cost-of-amazons-2017-10-01)
charged by rival Amazon.com Inc.(AMZN)Shares of Oracle rose 0.9%,
while Amazon shares ended down about 0.2%.
ESPN parent Walt Disney Co.(DIS) and cable operator Altice USA
Inc.(ATUS) gained after they reached a tentative agreement late
Sunday
(http://www.marketwatch.com/story/altice-disney-reach-tentative-deal-averting-espn-abc-blackout-2017-10-01)
to keep Disney's channels on the air for millions of subscribers in
the New York area. Disney's stock finished up 1.3%, and shares of
Altice USA Inc. rose 0.8%.
What's driving the market?
The closely watched ISM manufacturing index was at 60.8 in
September, representing the highest level for the economic reading
since 2004. A reading of 50 indicates expansion. A separate reading
on manufacturing activity from IHS Markit came in at 53.1 for the
same month, compared with 52.8 in the prior month. Economists
polled by MarketWatch had expected a reading of 58.1% for ISM's
index, down from 58.8% in August
(http://www.marketwatch.com/story/ism-manufacturing-index-jumps-to-six-year-high-in-august-2017-09-01).
Construction spending
(http://www.marketwatch.com/story/construction-spending-strengthens-in-august-led-by-rebound-in-public-sector-outlays-2017-10-02),
meanwhile, increased 0.5% during the month, and stood 2.5% higher
than a year ago. Outlays were at a seasonally adjusted annual $1.22
trillion rate in August, while July's initial tally was raised to
$1.212 trillion. The median forecast among economists surveyed by
MarketWatch was for a 0.4% increase.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Minneapolis Fed President Neel Kashari on Monday urged Federal
Reserve policy makers not to raise interest rates
(http://www.marketwatch.com/story/feds-kashkari-prefers-no-more-rate-hikes-until-inflation-hits-2-target-2017-10-02)again
until inflation hits the central bank's 2% annual target,
disagreeing with Fed Chairwoman Janet Yellen He isn't a voting
member of the Fed's policy-setting committee.
Similarly, Dallas Fed President Rob Kaplan said the Fed should
be "patient" with monetary policy and that the central bank should
wait to see a rise in inflation to justify a rate hike, speaking at
a moderated Q&A at the Fed's El Paso, Texas, branch. Kaplan is
a voting member of the Fed.
What other assets are doing
Spain's IBEX stock benchmark closed 1.2% lower after voters in
Catalonia backed secession in a Sunday referendum
(http://www.marketwatch.com/story/catalonia-leader-with-90-approval-we-have-the-right-to-be-independent-2017-10-01)
that was marred by violent clashes and boycotted by opponents. The
euro lost ground, while the Stoxx Europe 600
(http://www.marketwatch.com/story/european-stocks-rise-for-8th-straight-session-as-euro-slides-after-violent-catalonia-vote-2017-10-02)
rose.
Oil futures settled firmly in the red
(http://www.marketwatch.com/story/oil-prices-edge-down-on-data-showing-production-gain-stronger-dollar-2017-10-02)
and gold futures retreated to finish at a two-month low,
(http://www.marketwatch.com/story/gold-trades-lower-as-dollar-equities-aim-higher-2017-10-02)
as the ICE U.S. Dollar Index gained. Asian stocks closed mostly
higher
(http://www.marketwatch.com/story/australian-stocks-power-ahead-leading-asia-pacific-market-gains-2017-10-01),
though several markets were shut for holidays.
See: Brave investors might want to buy the dip on these two
Catalonia-based banks
(http://www.marketwatch.com/story/brave-investors-might-want-to-buy-the-dip-on-these-2-catalonia-based-banks-2017-10-02)
(END) Dow Jones Newswires
October 02, 2017 16:47 ET (20:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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