U.S. Equities Advance After French Vote as Banks Rally With Tech

(Bloomberg) -- U.S. stocks climbed as the weekend vote in France triggered a rally in global equities, and President Trump vowed to announce tax reforms this week.

The S&P 500 rose 1.1 percent to 2,374 at 10:20 a.m. in New York, climbing to the highest level since March 17. The benchmark last week capped gains for the first time in three weeks. The Dow Jones Industrial Average added 1.1 percent to 20,770 points.

U.S. Equities Advance After French Vote as Banks Rally With Tech
  • Financial stocks up 2.4% for biggest gain since March 1
  • Industrial and tech shares up at least 1.2%
  • Utility and real estate shares down; 10-year Treasury yield up 4 basis points
  • VIX down to 11.9, lowest close since April 4; spiked to 16 earlier in the month, highest level since November 9, amid heightened geopolitical tensions
    • Pro-growth and centrist Emmanuel Macron and far-right nationalist Marine Le Pen won the first round of France’s presidential elections Sunday. Global equities rallied after the result, which triggered a runoff on May 7 between two radically different visions of France’s vision
      • “While there is still going to be some caution regarding the final outcome of the French election, equity investors can turn more of their attention to fundamentals,” Ken Odeluga, a market analyst at City Index in London, said by phone
    • President Trump tweeted on Saturday that he plans to announce a “big” tax reform and reduction plan on April 26. Meanwhile, a U.S. government shutdown is possible on April 29 if Congress doesn’t approve a spending bill to fund the government past April 28
    • U.S. March Chicago national activity below est: March Chicago Fed national index 0.08 vs est. 0.50 (range -0.1 to 0.75); February revised to 0.27 from 0.34
    • After-market Monday: Range Resources Corp (RRC), Newmont Mining Corp (NEM), Ameriprise Financial Inc (AMP), Express Scripts Holding Co (ESRX), Zions Bancorporation (ZION), Crown Castle International Corp (CCI), UDR Inc (UDR), Whirlpool Corp (WHR)
    • Pre-market Tuesday: Centene Corp (CNC), Laboratory Corp of America Holdings (LH), Ryder System Inc (R), PulteGroup Inc (PHM), EI du Pont de Nemours & Co (DD), Biogen Inc (BIIB), Pentair PLC (PNR), McDonald’s Corp (MCD), Corning Inc (GLW), Freeport-McMoRan Inc (FCX), Eli Lilly & Co (LLY), Baker Hughes Inc (BHI), Fifth Third Bancorp (FITB), Nielsen Holdings PLC (NLSN), Xerox Corp (XRX), Coca-Cola Co/The (KO), Valero Energy Corp (VLO), AutoNation Inc (AN), Waters Corp (WAT), Masco Corp (MAS), S&P Global Inc (SPGI), Lockheed Martin Corp (LMT), T Rowe Price Group Inc (TROW), Northern Trust Corp (NTRS), 3M Co (MMM), Caterpillar Inc (CAT), PACCAR Inc (PCAR)

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