The Dow Jones Industrial Average stretched its record-high closing run into Monday, while Treasury yields slumped as markets weighed President-elect Donald Trump's planned nomination of Scott Bessent as Treasury secretary.
The Dow jumped 1% to 44,736.6, while the S&P 500 and the Nasdaq Composite rose 0.3% each to 5,987.4 and 19,054.8, respectively. Real estate led the gainers among sectors, while only energy and technology closed lower.
Trump announced the nomination of Bessent, a familiar Wall Street figure, in a social media post Friday.
"Stock traders are in an upbeat mood this morning, and again, this seems to be an enthusiasm directed mainly at the US," Macquarie said in a Monday note to clients. "What seems to be celebrated is US President-elect's selection of Scott Bessent to be US (secretary) of the Treasury."
The US 10-year yield plunged 13.7 basis points to 4.27%, while the two-year rate sank 10.3 basis points to 4.27%.
In company news, Nike (NKE) shares rose 2.4%, among the top gainers on the Dow, as DZ Bank upgraded the sportswear giant to buy from hold.
Bath & Body Works (BBWI) raised its full-year earnings outlook as it recorded better-than-expected fiscal third-quarter results. The personal care and home fragrance retailer's shares jumped nearly 17%.
ONEOK (OKE) agreed to acquire the remaining shares of midstream energy services company EnLink Midstream (ENLC) in an all-stock deal worth $4.3 billion. ONEOK shares fell 4.7%, among the steepest declines on the S&P 500, while EnLink closed 1% lower.
S&P 500 companies' latest quarterly profits are tracking more than 8% higher from a year earlier as the reporting cycle approaches close, Wells Fargo Investment Institute said. More than 90% of S&P 500 companies have posted quarterly earnings in the ongoing reporting period, with "a little over 75% beating estimates," down from 80% last quarter, according to the report.
West Texas Intermediate crude oil fell 3% to $69.09 a barrel. "Crude oil prices started the week on a soft note after a positive run last week as geopolitical concerns remain, although no new major escalation was seen over the weekend," ING Bank said in a report published Monday.
In economic news, Texas manufacturing activity improved into shallower contraction territory in November, but not as much as expected, while the production index turned negative, according to the Federal Reserve Bank of Dallas.
Existing home sales in the US are expected to increase to 4.3 million next year from 4.1 million in 2023 and a projected 4 million this year as more inventory hits the market, Zillow (Z, ZG) said.
Gold declined 3.1% to $2,653.60 per troy ounce, while silver dropped 3% to $30.82 per ounce.
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