landsberg bennettStocks advanced Monday, with the S&P 500 notching a fresh record closing high. Positive developments on the U.S.-China trade front and generally strong corporate earnings results helped boost risk sentiment, sending Treasury yields to six-week highs. President Trump commented that Washington is “ahead of schedule” in working to solidify part of a trade deal with Beijing. The Dow added 132 points, while the S&P 500 rose 0.6%. The Nasdaq Composite was up 1%.

In corporate news, Microsoft climbed 2.5% after beating out Amazon to win a $10 billion cloud computing contract with the Department of Defense. Tiffany & Co. surged 31.6% following reports that the luxury retailer has been in merger discussions with Louis Vuitton parent LVMH. In earnings, HSBC slid 3.6% after the lender missed Wall Street profit estimates and slashed its forward guidance. AT&T gained 4.3% after topping analyst expectations for monthly bill-paying subscribers.

Treasuries weakened, with the yield on the 10-year note up four basis points to 1.84%. In commodities, WTI crude lost 1.5% to $55.81/barrel, snapping a four-day winning streak as weak industrial profit data out of China overshadowed trade optimism. COMEX gold fell 0.6% to $1,490.40/ounce.

On the data front, wholesale inventories declined by 0.3% in September, missing projections for a slight uptick. Separate releases revealed the Chicago Fed’s National Activity Index worsened last month, as did manufacturing activity in the Dallas Fed region. An additional report showed the advance goods trade deficit narrowed in September.