Stocks remained in positive territory Monday, breaking a three-day losing streak ahead of U.S. corporate earnings data this week, despite mounting tension between North Korea and the U.S.
The S&P 500 rose 0.86%, the Dow Jones Industrial Average was up 0.90% and the Nasdaq jumped 0.89%. JPMorgan Chase (JPM - Get Report) was leading the Dow higher, up 1.7%, along with Boeing (BA - Get Report) and Nike (NKE - Get Report) both up over 1.6%. The financials sector had the highest movement on Monday.
"There was a three-day weekend and investors had time to better digest the information and realize that maybe they overreacted initially, which could be why we are seeing some green this morning," Lindsey Bell, CFRA Research investment strategist, said in a phone interview. "Better-than-expected results from the banks last week probably helped a little bit."
Stocks declined last week as geopolitical concerns dominated trading as markets grappled with confusion about President Donald Trump's next moves with Russia, Syria and North Korea.
U.S. Vice President Mike Pence, who is visiting South Korea, said Monday, "Just in the past two weeks, the world witnessed the strength and resolve of our new president in actions taken in Syria and Afghanistan. North Korea would do well not to test his resolve or the strength of the armed forces of the United States in this region."
Pence's comments follow North Korea's failed ballistic missile test on Sunday and Saturday's parade in Pyongyang that showcased the rogue nation's arsenal of intercontinental ballistic missiles.
West Texas Intermediate crude settled down 1% to $52.65 a barrel over worries that the increased output from the U.S. could strain oil prices, despite OPEC's push to cut production. The Energy Information Administration's monthly report estimates U.S. oil production to increase by 124,000 barrels a day in May.
Gold settled up 0.3% to $1,291.90 an ounce, the highest since the beginning of November.
The U.S. consumer price index for March fell more than anticipated at a seasonally adjusted 0.3%, after falling 0.1% percent in February. The data were released on Friday. Core inflation in March, reported at 2.0%, saw its lowest increase since November 2015. U.S. retail sales in March fell a seasonally adjusted 0.2%, more than expected, after a revised 0.3% percent drop in February.
"The March CPI and retail sales data were significantly softer than market expectations," Joseph LaVorgna, Deutsche Bank chief U.S. economist wrote in a note. "However, we believe that last month's weakness in both series was an aberration and we continue to project 2.0% real GDP growth in Q1 and 2.5% in the current quarter."
The Empire State manufacturing survey for April fell to 5.2 in April from 16.4 in March, the New York Federal Reserve reported Monday. Economists expected a reading of 14.0, according to FactSet.
The NAHB housing market index for April dropped to 68, three points lower than March's reading, which was an 11-year high.
Netflix shares rose 3% Monday as the streaming company is forecast by analysts to report earnings of 37 cents a share on revenue of $2.64 billion after Monday's closing bell.
United Airlines announced over the weekend it was changing company policy and would no longer allow crew members to displace customers already onboard an airplane following last week's forced removal of a passenger on a United aircraft that was about to depart from Chicago for Louisville. United Airlines shares rose 2.3% Monday.
Shares of MoneyGram International (MGI - Get Report) rose 7.7% after Alibaba (BABA - Get Report) affiliate, Ant Financial, said it was raising its bid from $13.25 to $18 a share, valuing the company at $1.2 billion. This offer surpasses a previous offer from Euronet Worldwide of $15.20 a share. Shares of Alibaba were up 1.2%.
Eli Lilly (LLY - Get Report) shares dropped 4% and Incyte's (INCY - Get Report) tumbled more than 10% on Monday after the company's joint application for the drug Baricitinib, a once-daily oral medication for the treatment of moderate-to-severe rheumatoid arthritis, was rejected by the Food and Drug Administration.