U.S. stocks rallied Monday as strong corporate earnings helped investors brush off geopolitical concerns.
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The Dow Jones Industrial Average gained 212.90 points, or 0.87%, to 24,573.04. The S&P 500 rose 21.54 points to 2,677.84. The Nasdaq Composite was up 49.64 points at 7,156.29.
Wall Street is coming off a positive week, during which forecasts for a robust earnings season overshadowed lingering uncertainty over U.S. trade. Analysts believe companies in the S&P 500 will report the best earnings growth in six years. Companies that have reported first-quarter earnings so far have said tax cuts and strength in the U.S. economy have fueled profits.
J.B. Hunt Transport Services (JBHT) said Monday it booked stronger revenue than expected for the first three months of 2018. The trucking company’s stock jumped 6.2%, while shares of competing firms and railroad operators also climbed.
Netflix (NFLX) reported earnings after the closing bell. The video streaming company reported subscriber growth that beat estimates.
Economic data released Monday included retail sales, which increased by 0.6% in March, snapping four months of declines. The Empire State Manufacturing Survey, which monitors manufacturing in New York state, was also released on Monday, and the April reading came in at 15.8 versus the prior 12.5.
Investors also reacted to a U.S.-led missile strike on Syria. Friday night, President Trump announced that he had ordered American forces to make targeted attacks on targets in Syria in response to gas attacks on civilians. Defense Secretary James Mattis described the attack as a one-shot deal.
Stocks had declined on Friday amid strong bank earnings that failed to impress investors, but the market secured weekly gains as Wall Street shook off concerns over U.S. trade.
Monday’s rally accelerated while President Donald Trump held a roundtable with local businesses in Hileah, Florida, and touted the benefits of tax reform.
|UNH||UNITEDHEALTH GROUP INCORPORATED||244.83||+2.10||+0.87%|
UnitedHealth Group (UNH) shares rose 2.7% ahead of the company’s first-quarter earnings report due Tuesday.
Advertising giant WPP (WPP) fell 4.7% after CEO Martin Sorrell resigned amid an investigation into personal misconduct.
Tronc (TRNC), which owns The Chicago Tribune and other newspapers, surged 10.8%. Axios reported that SoftBank, the majority owner of Sprint, is one of Tronc’s potential buyers.
Navistar (NAV), which manufactures trucks and engines, rallied 9.9% on a Reuters report that Volkswagen may purchase the company.
Ken Martin contributed to this report.