Stocks finished higher Monday. The Dow added 39 points to 25502 while the S&P 500 gained 10 points to 2850. The Nasdaq Composite climbed 47 points to 7859.
The major averages started the week off on a positive note as strong corporate earnings reports outweighed lingering trade tensions. According to FactSet, with 81% of S&P 500 having now reported, the blended year-over-year growth rate for earnings per share is 24.0%, well above initial projections of 20%. In geopolitics, President Trump said over the weekend that the U.S. has the upper hand in trade relations with China. Beijing responded that the country is prepared to sacrifice short-term economic interests.
The Technology group paced pains as shares Facebook climbed 4.5% to $185.69 amid reports the social media company is working with large banks on integrating user financial information into its messenger application. Financials also outperformed as Berkshire Hathaway Class B shares added 2.9% to $206.06 after Warren Buffet’s company easily topped earnings projections. In M&A news, shares of Praxair declined 3.8% to $157.91 on reports the company may have to divest additional assets in order to gain U.S. anti-trust approval on its proposed merger with German chemical-maker Linde.
Breadth was positive on issues by 8:5 on the NYSE and by 3:2 on the Nasdaq. Composite NYSE Volume was more than 3.6 billion shares.
Treasuries finished little changed as the yield on the 10-year note fell one basis point to 2.94%. In commodities, WTI crude gained 0.5% to $68.86/barrel. COMEX gold lost 0.5% to $1208.60/ounce amid a stronger dollar.