U.S. Stocks Advance After Congress Averts Government Shutdown

(Bloomberg) -- U.S. stocks held onto early gains, even amid headlines from President Trump on North Korea and the banking industry.

The S&P 500 added 0.2 percent to 2,388.33 at 4 p.m. in New York. The benchmark ended down 0.2 percent on Friday as losses in credit-card providers offset gains in technology stocks, trimming its weekly advance to 1.5 percent. The Dow Jones Industrial Average slid 27 points to 20,913.46.

• Tech stocks (+0.9%) and real estate (+0.6%) lead market higher
  • Lam Research, Applied Materials up at least 2.7%
• Financial shares end higher after dropping on a Bloomberg News interview in which President Trump said he is actively considering breaking up big banks
  • Volume in XLF ETF surged to almost 3x 30-day average between 12:30 and 1pm
  • Earlier, Vice President Mike Pence says replacing the Dodd-Frank banking overhaul law is a top priority
• Utility, telecom and consumer staples shares down at least 0.5%; bond yields higher with 10-year up 4bps
• Volume in S&P 500 7% below the 30-day average; real estate and tech shares only groups trading on higher volume
  • Volume movers: O’Reilly Automotive, Newell Brands, Affiliated Management, Harris Synchrony Financial all traded on volume at least 2x 30-day average
• VIX down to 10.1
  • Volatility movers: LKQ Corp, JB Hunt Transport, Kellogg, Eastman Chemical and Scana Corp have highest put/call volume ratios in S&P 500
• Most equity markets in Europe and developing economies such as China, Russia, South Africa, and Turkey were closed on Monday for holidays
• POLITICS:
  • U.S. House and Senate negotiators reached a bipartisan agreement Sunday night on a $1.1 trillion bill that would keep the government open through the end of September
  • "The avoidance of a U.S. government shutdown helped markets shift from a neutral to more positive tone overnight in Asia," said Jasper Lawler, senior market analyst at London Capital Group
• ECONOMY:
  • Fed’s Cut in Bond Holdings May Be Messier Than Yellen Hopes
  • U.S. March Personal Income rose 0.2%; est. Up 0.3%
  • U.S. consumer spending stalled in March while inflation slowed to below the Federal Reserve’s target
• EARNINGS:
  • After-market Monday: Advanced Micro Devices Inc (AMD), Alexandria Real Estate Equities Inc (ARE), Noble Energy Inc (NBL), Vornado Realty Trust (VNO), Flowserve Corp (FLS), FMC Corp (FMC)
  • Pre-market Tuesday: Fidelity National Information Services Inc (FIS), Coach Inc (COH), HCA Holdings Inc (HCA), Martin Marietta Materials Inc (MLM), Becton Dickinson and Co (BDX), PG&E Corp (PCG), Aetna Inc (AET), AMETEK Inc (AME), HCP Inc (HCP), Emerson Electric Co (EMR), NRG Energy Inc (NRG), Pinnacle West Capital Corp (PNW), Ecolab Inc (ECL), Eaton Corp PLC (ETN), ConocoPhillips (COP), Merck & Co Inc (MRK), Pfizer Inc (PFE), CVS Health Corp (CVS), Xylem Inc/NY (XYL), Charter Communications Inc (CHTR), WEC Energy Group Inc (WEC), Altria Group Inc (MO), Mosaic Co/The (MOS), Archer-Daniels-Midland Co (ADM), Cummins Inc (CMI), Mastercard Inc (MA)
• Street Wraps:
  • Fox May Play Defense to Thwart Sinclair Tribune Bid: Street Wrap
  • Hess Midstream’s Stable Cash Flows Please Analysts: Street Wrap
  • Schneider National ‘Secret Sauce’ Gets Analyst Love: Street Wrap

For more equity market news:

• White House Is Key as ETF Issuers Rush to Capitalize on Trump
• Europe Starts Earnings Season With a Bang, Leaving U.S. Behind
• Prison Stocks Top Performing REITS in Trump’s 100 Days: Chart

To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net.

To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Sebastian Silva