The Dow Jones Industrial Average closed at a record high on Monday, with all three major U.S. indices up 1% or more. A stronger earnings forecast and solid manufacturing data drove the rally, and eight of the S&P 500's sectors advanced while three declined.
The Dow Jones Industrial Average closed at a record high on Monday. The S&P 500 also rebounded to within 0.5% of its own record.
All three major U.S. indices rose 1% or more, as investors set aside a recent slump in chip stocks and turned instead to manufacturing data and Q2 earnings estimates.
Q2 earnings for the S&P 500 are now forecast to grow 47.7%, according to LSEG I/B/E/S consensus data. That is virtually double the estimate from a month earlier.
Eight S&P 500 sectors gained on the day, while three declined. Communication services rose 4%. Consumer discretionary shares added 2.7%.
Amazon crossed $3 trillion in market capitalization for the first time as its shares climbed Monday. Oracle rose 9%. Boeing added 8%.
Microsoft and Alphabet each gained 5%. eBay, however, fell 6%.
U.S. factory activity expanded in July at its fastest pace in over four years. Euro zone manufacturing output reached its highest level in four and a half years. Japan's manufacturing PMI jumped to a 12-year high.
Investors now turn to Tuesday's U.S. trade data and July JOLTS job openings report, along with earnings from SpaceX, AMD, Caterpillar and McDonald's, to see whether the rally can extend.
Source: Investing.com
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