Dow transports notch fresh all-time intraday high
U.S. stock benchmarks climbed modestly higher on Monday, as a pair of its more embattled sectors, technology and energy, drew bidders.
In the near term, investors also braced for Federal Reserve Chairwoman Janet Yellen, who will deliver her semiannual monetary-policy report to Congress on Wednesday and Thursday. The start of second-quarter earnings season, launching in earnest on Friday with a roster of banks, also is in focus.
The Dow Jones Industrial Average added 26 points, or 0.1%, at 21,440, led by gains of at least 1% in Visa Inc.(V), DuPont(DD) and Apple Inc.(AAPL)
The S&P 500 index added 5 points, or 0.2%, at 2,430, as the tech sector, helped to lift the broad-market benchmark. The lesser-weighted materials sector led gainers with a 0.9% advance.
Meanwhile, the Nasdaq Composite Index tacked on 30 points, or 0.5%, to 6,182, as the tech-heavy gauge added to its Friday rally following a solid reading of U.S. jobs (http://www.marketwatch.com/story/us-stock-futures-in-holding-pattern-ahead-of-top-tier-jobs-report-2017-07-07).
Also, the Dow Jones Transportation Average hit a fresh intraday record at 9,706.74, up 0.1% on the session.
"All of the conversations right now are about earnings," said Mike Antonelli, equity sales trader at Robert W Baird & Co. "The health-care bill and the tax bill all of that has been put in the back burner as the market moves on to the next catalyst, and what matters right now is earnings," he said, referring to initiatives by Republicans to push through bills to cut corporate taxes and overhaul Obamacare.
Looking ahead to Friday, a trio of banks are expected to report quarterly results, including J.P. Morgan Chase & Co.(JPM), Wells Fargo & Co. (WFC), and Citigroup Inc.(C)
"We're all waiting for the beginning of earnings season where we get to ask the question are things getting better or worse," said Kim Caughey Forrest, senior portfolio manager at Fort Pitt Capital Group. "With banks, it's good to get that information first."
Last week, the Dow, S&P 500 and the Nasdaq Composite ended modestly higher. The three gauges have all tacked on 8% or more so far this year, but they're trading below their record peaks hit in June.
Investors are paying attention to whether oil prices can pull out of a slump--and whether the technology sector (XLK) can follow through on Friday's rally. Oil futures (http://www.marketwatch.com/story/oil-prices-rebound-as-some-see-last-weeks-selloff-as-overdone-2017-07-10) were 0.7% higher, following a nearly 4% selloff last week.
Read more:Stock market tracking tech rebound, oil slump ahead of big bank earnings (http://www.marketwatch.com/story/stock-market-tracking-tech-rebound-oil-slump-ahead-of-big-bank-earnings-2017-07-08)
The S&P 500's tech sector was trading 0.7% higher Monday, adding to the sentiment that Friday's rebound wasn't a fluke. Fort Pitt Capital's Forrest supports the idea that the recent tech selloff was a pause for the actively bought sector, seeing that the sector, from hardware to software, is so pervasive in everyday life.
Treasury yields retreated slightly (http://www.marketwatch.com/story/treasury-yields-retreat-as-ecb-officials-question-taper-timing-2017-07-10) as central bankers in Europe questioned how soon the European Central Bank could start tapering their bond buying programs. The yield on the 10-Year Treasury slipped 1 basis point to 2.377%, following a rise from around 2.14% in late June.
"Central banks are likely to remain a key focus for investors this week, with the sudden hawkish shift among a number of them in recent weeks pushing bond yields higher and weighing on risk appetite," said Craig Erlam, senior market analyst at Oanda, in a note.
Economic news: A reading on consumer credit is slated to hit at 3 p.m. Eastern Time.
Stocks to watch:Abercrombie & Fitch Co. (ANF) shares lost a fifth of their value after the embattled retailer early Monday said it terminated a potential buyout of the company, and Best Buy Co. Inc.'s stock (BBY) tumbled 6.5% amid worries about heightened competition (http://www.marketwatch.com/story/best-buys-stock-tumbles-to-pace-sp-500-decliners-amid-concerns-over-amazon-effect-2017-07-10), highlighting the struggles of brick-and-mortar retailers.
Along those lines, Macy's Inc.(M) shares fell 6.6%, Gap Inc.(GPS) dropped 7% and Kohl's Corp.(KSS) shares fell 5.2%.
Shares in Tesla Inc.(TSLA) rose 0.5% after falling 13% last week (http://www.marketwatch.com/story/teslas-bad-week-gets-worse-as-elon-musks-credibility-takes-another-hit-2017-07-06), as the first Model 3 sedan rolled off the electric-car maker's assembly line (http://www.marketwatch.com/story/elon-musk-shows-off-first-model-3-to-roll-off-assembly-line-2017-07-09) over the weekend.
Amazon.com Inc. (AMZN) may be in focus as it is set to launch on Tuesday its "prime day" sales event. Shares of the company were up 1.9%. The company also reported that a new fulfillment center in Orlando, Fla., would create 1,500 new jobs (http://www.marketwatch.com/story/amazon-to-create-1500-new-jobs-in-florida-with-new-fulfillment-center-2017-07-10), with benefits.
Barnes & Noble Inc. (BKS) slumped 2% as the company appointed Carl Hauch (http://www.marketwatch.com/story/barnes-noble-appoints-chief-operating-officer-2017-07-10), formerly chief operating officer at CityMD, as its vice president of stores.
Shares of Arconic Inc.(ARNC) rose 3.2% after the maker of aluminum products was upgraded at J.P. Morgan (http://www.marketwatch.com/story/arconic-stock-surges-after-jp-morgan-turns-bullish-2017-07-10), citing improved valuation
Household chemicals seller WD-40 Co.(WDFC) and IT company Barracuda Networks Inc.(CUDA) are due to report after the market's close.
Other markets:European stocks (http://www.marketwatch.com/story/european-stocks-rise-with-dax-marching-higher-as-german-exports-surge-2017-07-10) finished higher, after Asian markets (http://www.marketwatch.com/story/asian-markets-bounce-back-after-last-weeks-losses-2017-07-09) mostly closed with gains.
Gold futures (http://www.marketwatch.com/story/gold-slips-heads-toward-fresh-four-month-low-2017-07-10) advanced, and a key dollar index traded flat.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
--Victor Reklaitis in London contributed to this article.
(END) Dow Jones Newswires
July 10, 2017 13:57 ET (17:57 GMT)