Stocks finished higher Monday, as an immigration deal between the U.S. and Mexico helped extend last week’s rally. Over the weekend, President Trump announced that proposed tariffs on Mexican goods would be suspended “for now”. The Dow added 78 points, while the S&P 500 and NASDAQ advanced 0.5% and 1.1%, respectively.
Stocks entered the week coming off their best week of the year after a soft non-farm payrolls report increased speculation concerning Fed rate cuts this year. On the data front today, the Jobs Openings and Labor Turnover Survey (JOLTS) showed U.S. job openings declined modestly in April.
Treasuries were weaker, with the yield on the 10-year note up six basis points to 2.14%. In the commodity pits, WTI crude slipped 1.2% to $53.33/barrel despite reports of OPEC’s plan to extend production cuts. COMEX gold fell 1.0%, its first decline in eight sessions.
The Consumer Discretionary sector paced the gains as a rebound in automakers helped the group climb roughly 1.1%. Technology shares also outperformed as Advanced Micro Devices added 2.5% to $33.23 following reports that the new Xbox will contain the chipmaker’s products. In M&A news, United Technologies fell 3.1% to $128.01, while Raytheon inched up 0.7% to $187.12 after the two sides agreed to merge in a $21 billion deal. Meanwhile, Tableau surged 33.7% to $167.41 after agreeing to be acquired by Salesforce.com in an all-stock transaction worth $15.3 billion.
Breadth was positive on issues by 3:2 on the NYSE and 2:1 on the Nasdaq. Composite NYSE volume totaled more than 2.5 billion shares.