MARKET SNAPSHOT: Stock Market Rallies Early To Kick Off July Trade

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Dow transports notch first all-time intraday high since March 1 in early trade

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U.S. stocks traded higher Monday, with gains firming after an upbeat report on manufacturing, helped to push the main benchmarks further into positive territory, led by a rally in banks and energy shares.

Traders are facing an abbreviated session ahead of Independence Day on Tuesday, but will see a spate of data on car and truck sales.

Read:Which markets are closed for the Fourth of July? (http://www.marketwatch.com/story/july-4th-which-markets-are-closed-2017-06-30)

The S&P 500 index rose 14 points, or 0.6%, at 2,438, led by firm gains in the energy and financials sector, each up by at least 1%. The Dow Jones Industrial Average climbed 157 points, or 0.7%, at 21,505, with a 2% rally in shares of Walt Disney Co. (DIS) adding 14 points to the blue-chip gauge's early surge on speculation that the entertainment giant might be bought by Verizon Communications Inc.(VZ).

Meanwhile, the Nasdaq Composite Index rallied 23 points, or 0.4% at 6,164.

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Also, the Dow Jones Transportation Average also hit an intraday high of 9,666.71 during the session, marking the indicator's first all-time intraday high since March 1.

"Trading volumes are likely to be relatively subdued at the start of the week, as we've already seen evidence of in the Asian session overnight, due to Tuesday's bank holiday in the U.S. and the half day today that precedes it," said Craig Erlam, senior market analyst at Oanda, in a note.

"Of course, this doesn't mean markets will necessarily be flat and the constant stream of data throughout the day could aid this," Erlam added.

See:Stock market poised to kick off July 4 week with fireworks of its own (http://www.marketwatch.com/story/stock-market-poised-to-kick-off-july-4th-week-with-fireworks-of-its-own-2017-06-30)

The New York Stock Exchange will end trading at 1 p.m. Eastern on Monday and will be closed on Tuesday. Government bond markets wrap up at 2 p.m. Eastern.

On Friday, the S&P 500 and Dow closed modestly higher as the second quarter came to an end (http://www.marketwatch.com/story/us-stock-futures-point-to-a-comeback-from-tech-led-battering-2017-06-30), while the tech-laden Nasdaq Composite finished slightly lower for the session. The S&P and Dow have advanced for seven straight quarters, while the Nasdaq has gained for four quarters in a row.

Economic news: ISM's manufacturing index rose to 57.8 in June (http://www.marketwatch.com/story/disney-shares-up-almost-2-on-report-verizon-is-eyeing-deal-2017-07-03), compared with 54.9 in the prior month, marking its highest level since 2014. A reading of at least 50 indicates expansion. A separate reading from IHS Markit showed manufacturing PMI falling to 52.0 in June from 52.7. Economists polled by MarketWatch had expected a reading of 55.5% for the ISM gauge.

Meanwhile, may construction spending was flat (http://www.marketwatch.com/story/construction-spending-zigzags-higher-commerce-says-2017-07-03), compared with a reading for April that was lifted by the Commerce Department.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

Other markets:Oil futures (http://www.marketwatch.com/story/oil-gains-aiming-for-eight-winning-sessions-in-a-row-2017-07-03) traded higher, as crude tried for its eighth up session in a row. European stocks gained, while Asian equity markets closed mixed (http://www.marketwatch.com/story/asian-markets-mixed-as-china-hong-kong-bond-trading-link-opens-2017-07-02). Gold futures pulled back, and a key dollar index advanced.

Stocks to Watch: Shares in Tesla Inc.(TSLA) rose 1.7% after its CEO, Elon Musk, said production for its Model 3 electric car should start this Friday (http://www.marketwatch.com/story/teslas-model-3-to-begin-production-on-friday-elon-musk-2017-07-03). The $35,000 vehicle has "passed all regulatory requirements for production two weeks ahead of schedule," Musk said on Twitter.

Shares of EQT Corp. (EQT) rose 0.6% in early trade after The Wall Street Journal reported that activist investor Jana Partners took a 5.8% stake in the energy-and-production company.

(END) Dow Jones Newswires

July 03, 2017 10:25 ET (14:25 GMT)