Stocks rebound as utilities, consumer staples lead the rally.
U.S. stocks advanced Monday, starting the week off on a positive note thanks to broad gains at utilities and consumer staples.
The large-cap S&P 500 Index gained 0.1% to close at 2,584.84. Seven of 11 sectors contributed to the rally, with utilities stocks adding 1.2%. Shares of consumer staples companies also gained 0.6% on average.
On the opposite side of the spectrum, the main decliners on Monday included energy and industrials, which fell half a percent each.
The Dow Jones Industrial Average (NYSEARCA:DIA) added 17.49 points, or 0.1%, to close at 23,439.70. Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARCA:QQQ) gained 0.1% to finish at 6,757.59.
Shares of Qualcomm rose on Monday after the chipmaker said its board rejected a $105 billion takeover from Broadcoin. Meanwhile, General Electric declined more than 7% after the company lowered its profit targets for 2018 and said it would slash its annual dividend.
The Chicago Board Options Exchange (CBOE) Volatility Index (NYSEARCA:VXX) gained ground on Monday, rising to its highest level since early September. The so-called “investor fear index” advanced 1.9% to close at 11.50.
There were no major economic news releases scheduled for Monday. Later in the week, investors can expect a deluge of economic data in the form of retail sales and consumer inflation.
The Final Word: Stocks are resuming their upward trajectory, although the pace of gains has slowed somewhat. With earnings season winding down, investors are shifting their attention back to the economic data and monetary policy.