U.S. stocks were advancing Monday afternoon, near session highs, as investors looked forward to another round of corporate earnings, while awaiting economic data and the outcome of a Fed policy meeting on Wednesday.
What are indexes doing?
The Dow Jones Industrial Average DJIA, +0.14% rose 56 points, or 0.2%, at 26,599, while the S&P 500 index SPX, +0.24% rose 9 points, or roughly 0.3%, to 2,949. The Nasdaq Composite Index COMP, +0.34% rose 27 points to 8,174, a gain of 0.3%.
The S&P 500 and Nasdaq both hit new, intraday records early Monday, with the S&P surpassing its old record of 2,940.91, set Sept. 21, while the Nasdaq topped its previous intraday high of 8,151.84. They are also on track to set new, record closing highs Monday.
What’s driving the market?
Earnings season continues, with 164 S&P 500 companies, including five Dow components, set to report first-quarter results in the week ahead, according to FactSet data. Through the end of last week, 46% of companies reported.
Federal Reserve policy makers are fully expected to leave interest rates on hold when they conclude a two-day meeting on Wednesday. But the statement and Chairman Jerome Powell’s remarks will be closely watched for clues to their thinking.
See: Powell faces tough test Wednesday as market is uneasy with his recent communication
Some investors continue to look for the Fed to cut rates before the end of the year, even after data Friday showed the U.S. economy started 2019 on a stronger-than-expected footing. That is because underlying components of the report on first-quarter gross domestic product appeared less impressive and, moreover, due to continued signs that inflation remains subdued, like a Monday reading of PCE inflation that showed prices rising at an annual rate of 1.6% in March, below last month’s reading and the Fed’s 2% target.
Read: After a sterling first-quarter GDP number, rate-cut bets gain steam — what gives?
The government’s estimate of April jobs growth is due on Friday.
U.S.-China trade talks are scheduled to resume in Beijing this week, with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin set to meet Tuesday with Chinese Vice Premier Liu He.
Meanwhile, The Wall Street Journal reported that President Donald Trump’s attempt to revamp North America’s trade rules is hitting a roadblock in Washington, with Democrats and labor groups demanding changes that dim the chances of ratifying a new agreement with Canada and Mexico before next year’s presidential election.
What stocks are in focus?
Anadarko Petroleum Corp. APC, -0.03% said Monday it intends to resume talks with Occidental Petroleum Corp. OXY, -2.32% regarding its bid to acquire the company, which came after an earlier merger agreement with major oil producer Chevron Corp. CVX, +0.37%
Anadarko shares rose 0.1% Monday, while Occidental shares fell 2.1% and Chevron shares edged up 0.5%.
Shares of Dow component Boeing Co. BA, -0.39% were in focus after The Wall Street Journal reported the plane maker didn’t tell Southwest Airlines Co. LUV, +2.02% when the company began flying 737 Max jets in 2017 that a safety feature designed to warn pilots about malfunctioning sensors had been deactivated. Boeing shares fell 0.3% Monday.
Shares of Dow component Walt Disney Co. DIS, +0.04% were virtually unchanged Monday, reversing premarket gains that accrued after “Avengers: Endgame,” from the entertainment giant’s Marvel Studios, crushed box-office records in its opening weekend, with an estimated $350 million in domestic ticket sales and $1.2 billion in global sales.
Don’t miss: How ‘Avengers: Endgame’ smashed all the records, in one chart
Spotify Technology SA SPOT, -0.80% reported first-quarter earnings Monday morning, with revenue and subscriber growth surpassing Wall Street expectations. The company’s stock fell 0.9% Monday.
Shares of Restaurant Brands Inc. QSR, -1.60% retreated 1.7% Monday, after the Burger King parent reported first-quarter profit that fell below expectations, though revenue was in line.
Shares of Google parent Alphabet Inc. GOOG, +1.26% could be in focus as the internet giant prepares to issue its first-quarter earnings report after the close of trade Monday.
Read: How ‘Avengers: Endgame’ smashed all the records, in one chart
What are the analysts saying?
“Personal spending data came in strong, which gave markets a boost,” Randy Frederick, vice president. of trading and derivatives at Charles Schwab, told MarketWatch. “Earnings have been better than expected overall, and the earnings recession many feared looks like it won’t happen.”
“There’s no bad news right now, “ he added. “The market is in a clear up momentum, and a lack of bad news and upward momentum pushes things higher.”
What’s on the economic calendar?
Consumer spending rose 0.9% in March, above economists expectations of a 0.8% rise, per a MarketWatch poll, and the largest monthly rise in nearly 10 years. The Commerce Department also indicated that personal incomes rose 0.1%, below expectations of 0.4% growth.
See: Economic Calendar
How are other markets trading?
Asian markets closed mixed Monday, with Hong Kong’s Hang Seng Index HSI, +0.97% adding 1%, while China’s Shanghai Composite Index SHCOMP, -0.77% and the Shenzhen Composite index 399106, -2.41% both losing ground. Meanwhile, China’s CSI 300 000300, +0.28% gained 0.3%. In Europe, stocks closed mostly higher, with the Stoxx Europe 600 SXXP, +0.08% up 0.1%
In commodities markets, the price of oil CLM9, +0.30% was up 0.3%, while the value of gold GCM9, -0.59% was on the decline. The U.S. dollar DXY, -0.16% meanwhile, edged slightly lower.