Stocks finished higher on Monday, rebounding from last week’s slump. The Dow advanced 143 points, while the S&P 500 rose 0.7%. The Nasdaq Composite was up 1.3%.
A positive manufacturing update supported risk sentiment, with the Institute for Supply Management’s (ISM) gauge showing the sector returned to expansionary territory last month for the first time since July. Separately, construction spending declined in December for the first time since June. Treasuries weakened, with the yield on the 10-year note up one basis point to 1.52%. In commodities, WTI crude slid 2.9% to $50.03/barrel, its lowest point in more than a year. Talks of OPEC+ supply curbs were overshadowed by worries that the coronavirus could limit Chinese oil consumption.
Eight of 11 S&P 500 sectors closed in positive territory, with Energy shares lagging the most. Materials led advancers, while Technology and Communication Services stocks also outperformed. In earnings, Sysco Corp. lost 6.6% after the food distributor’s quarterly sales fell short of analyst estimates. In other corporate news, Tesla surged nearly 20%, its largest one-day advance since May 2013 following an analyst upgrade. Gilead Sciences gained 5% on news its experimental drug would be tested on a small group of coronavirus patients.
Concerns about the coronavirus and its potentially negative impact on global growth sent U.S. stocks tumbling on Friday, ending January on a downbeat note. The S&P 500 posted its worst session since October and its first back-to-back weekly decline of at least 1% since late August.