S&P 500 Rallies to a Record High as Earnings Come Into Focus
The S&P 500 rallied to a new intraday high on Monday as investors continued to cheer Friday's blowout jobs report and prepared for the beginning of the second-quarter earnings season.
The S&P 500 rose 0.4% in trading on Monday and surpassed the closing high set on May 21, 1995. The Dow Jones Industrial Average added 0.5%. The Nasdaq climbed 0.67%.
Stocks were lifted by a better-than-expected U.S. jobs report for June. Nonfarm payrolls rose by a seasonally adjusted 287,000, a dramatic rebound from the 11,000 jobs created in May. The unemployment rate rose to 4.9% after falling to 4.7% in May. The rise was seen as a signal that fewer people gave up looking for work as the labor force participation rate rose slightly to 62.7%.
Japan's Nikkei 225 Index average rose 4% as Prime Minister Shinzo Abe's party won additional seats in the upper house, which increases the chances of additional monetary stimulus from Japan's central bank.
Oil prices continued to move in and out of positive territory on Monday. Recently, crude was down slightly to $45.32 a barrel.
"For more than two years, there's been more supply than demand,' said Spencer Welch, an oil analyst with IHS. Based in London, Welch expects crude to range between $45-$50 a barrel over the next six months. "The market is back into supply and demand balance," he said.
Yields on the 10-year Treasury bond stood at 1.379%, near a record low, as yields on sovereign debt in Europe and Japan remained near-zero or in negative territory.
Tesla (TSLA) - Get Report shares rose 2.8% after CEO Elon Musk tweeted that he's working on a "top secret masterplan" and expects to unveil more details shortly. The message was similar to a blog post Musk wrote nearly a decade ago titled "The Secret Tesla Motors Master Plan (just between me and you)," which detailed what later became the Tesla Model S and Tesla 3 sedans.
Walmart's (WMT) - Get Report online shoppers will enjoy free shipping with no minimum purchase for the next five days starting Monday in an effort to compete with Amazon's (AMZN) - Get Report "Prime Day" on Tuesday.
Kinder Morgan (KMI) - Get Report agreed to sell its stake in the 7,600-mile South Natural Gas pipeline system to Southern Co. (SO) - Get Report for $1.47 billion. Kinder Morgan shares rose 2.9%.
General Electric's (GE) - Get Report Predix software will soon start operating on Microsoft's (MSFT) - Get Report cloud, the companies announced Monday. The software connects industrial apparatus to the Internet.
The start of second-quarter earnings season begins after the closing bell Monday when Alcoa (AA) - Get Report reports financial results. Analysts expect the aluminum company to post profit of 9 cents a share on sales of $5.2 billion, according to analysts surveyed by FactSet.
British Home Secretary Theresa May is likely to succeed U.K. Prime Minister David Cameron, according to various reports, after her competitor Andrea Leadsom quit the race amid dwindling support.