Stocks finished mostly higher Monday. The Dow climbed 192 points to 26728, while the S&P 500 added 10 points to 2924. The Nasdaq Composite slipped 9 points to 8037.
U.S. equities started off the fourth quarter on a positive note as the U.S. and Canada secured a new trade pact. The trilateral agreement will be called the United States-Mexico-Canada Agreement (USMCA). On the data front, a survey from the Institute for Supply Management revealed manufacturing activity eased in September, but remains firmly in expansionary territory. A separate report showed construction spending grew 0.1% in August, below estimates of 0.4%, and July’s upwardly revised 0.2% gain.
Six of 11 S&P 500 sectors finished higher. The Energy group paced gains as oil prices climbed to the highest level since late 2014. Industrials also outperformed as the new trade pact with Canada provided a tailwind to shares of Boeing which added 2.7% to $381.95. The newly formed Communication Services sector underperformed as Facebook slipped 1.2% to $162.44 on reports the social media giant could be fined as much as $1.6 billion for its most recent data breach.
Breadth was negative on issues by 7:4 on the NYSE and by 2:1 on the Nasdaq. Composite NYSE volume was more than 3.3 billion shares.
Treasuries weaker with the yield on the 10-year note up four basis points to 3.09%. In commodities, WTI crude jumped 3.1% to $75.52/barrel, amid easing trade tensions and continued supply concerns. COMEX gold fell 0.4% to $1,187.10/ounce amid a stronger dollar.