Financial sector lead the rally
U.S. stocks closed higher on Monday, 18 December 2017 with major indexes ending at records on growing confidence congressional Republicans will succeed in passing tax-cut legislation as early as this week. The day's gains were broad, with eight of the 11 primary S&P 500 sectors ending higher on the day. Financials, which are seen as the biggest beneficiaries of the tax legislation, were among the biggest gainers of the day followed by energy and material stocks.
The Dow Jones Industrial Average rose 140.46 points, or 0.6%, to close at 24,792.20. The blue-chip average posted its seventh positive session of the past eight. The S&P 500 gained 14.35 points, or 0.5%, to end at 2,690.16. The Nasdaq Composite Index rose 0.8%, or 58.18 points, to 6,994.76. All three hit intraday records, while the Nasdaq topped 7,000 for the first time.
Financial stocks were broadly higher. Wells Fargo & Co. rose 1.8% while Bank of America rose 1.5%.
Large-capitalization technology and internet stocks helped support the Nasdaq. Apple rose 1.4% while Amazon jumped 1%.
Oracle Corp. fell 1.2% after the software company struck a $1.2 billion deal to buy Australian project-management software provider Aconex.
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Commodities gained as the dollar eased against most other major currencies, with the ICE Dollar Index off 0.3%, though stocks rallied. Copper typically moves inversely to the dollar and stocks, as investor appetite for riskier assets tends to lure investors away from commodities.
Reviewing Monday's economic data, it was limited to the NAHB Housing Market Index for December. The NAHB Housing Market Index for December rose to 74 (consensus 70) from a revised reading of 69 in November (from 70).
Bullion prices ended higher at Comex on Monday, 18 December 2017 at Comex. Gold extended its winning streak for a fourth session on Monday, rising in anticipation of the expected passage of the much-awaited tax bill. But even as financial markets continue to monitor the progress of the tax bill, the implication for gold prices are somewhat mixed.
February gold climbed $8, or 0.6%, to settle at $1,265.50 an ounce. March silver gained 0.9% to settle at $16.21 an ounce after tacking on 1.5% last week.
Crude oil futures saw a mixed finish on Monday, 18 December 2017 at with the U.S. benchmark slipping in quiet trade to close in negative territory.
West Texas Intermediate crude oil for January delivery, the U.S. benchmark, declined 14 cents, or 0.2%, to end at $57.16 a barrel after earlier trading as high as $57.78. Brent oil for February, the global benchmark, gained 18 cents, or 0.3% to close at $63.41 a barrel. The moves mirrored a mixed session on Friday, when WTI rose 0.5%, but Brent shed 0.1%.
U.S. Treasuries ended Monday mixed, with shorter-dated issues showing relative strength. The yield on the 2-yr Treasury note slipped one basis point to 1.83%, while the benchmark 10-yr yield climbed three basis points to 2.39%. Yields move inversely to prices.
On Tuesday, investors will receive three pieces of data--November Housing Starts (consensus 1259K), November Building Permits (consensus 1280K), and the Current Account Balance for the third quarter (consensus -$117.4 billion)--all of which will be released at 8:30 ET.
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