The major averages finished higher Monday as investors awaited a crucial week for geopolitical and central bank updates. The Dow added 22 points while the S&P 500 gained 0.1%. The Nasdaq Composite outperformed its peers, climbing 0.6% as Technology shares rebounded from recent weakness.
Central bank news garnered much of the attention during the session with the Federal Reserve expected to begin their two-day policy meeting tomorrow. The Fed is widely expected to leave interest rates unchanged at the conclusion of its summit Wednesday, but investors will be fixated on Chair Jerome Powell’s post-meeting press conference for indications of future rate cuts. On the data front, a report showed homebuilder confidence unexpectedly fell in June. In a separate release, a gauge on manufacturing activity in the New York Fed district experienced its largest monthly drop on record, falling to the lowest level since 2016. Treasuries strengthened following the report, but pared the gains to leave the yield on the 10-year note up one basis point to 2.09%.
Six of 11 S&P 500 sectors ended higher. The Communication Services group was a notable outperformer with shares of Facebook and Netflix rising 4.2% and 3.2%, respectively. In corporate news, Pfizer added 0.3% after announcing it would buy Array Biopharma for $11.4 billion. Shares of Array surged nearly 57%.
Breadth was even on issues on the NYSE and positive by 6:5 on the Nasdaq. Composite NYSE volume was more than 2.8 billion shares.
In commodities, WTI crude lost 1.1% to $51.95/barrel. COMEX Gold dipped 0.1% to $1,338.70 amid a modestly stronger dollar.