Stocks Extend Upward Trend To Reach New Record Highs - U.S. Commentary

(RTTNews) - Stocks moved mostly higher during trading on Monday, extending the uptrend trend seen over the past several sessions. With the upward move on the day, the major averages once again climbed to new record closing highs.

The major averages ended the day firmly in positive territory but off their highs of the session. The Dow advanced 142.79 points or 0.7 percent to 20,412.16, the Nasdaq rose 29.83 points or 0.5 percent to 5,736.96 and the S&P 500 climbed 12.15 points or 0.5 percent to 2,328.15.

The markets continued to benefit from recent upward momentum spurred in part by optimism about reduced corporate taxes under President Donald Trump.

The strength on Wall Street came despite a lack of major U.S. economic data, although the economic calendar picks up considerably over the next several days.

A report on producer price inflation is due on Tuesday, while a slew of data is scheduled to be released on Wednesday, including reports on consumer prices, retail sales and industrial production.

Reports on regional manufacturing activity, housing starts, and homebuilder confidence are also scheduled to be released this week.

Federal Reserve Chair Janet Yellen's semi-annual testimony before Congress is also likely to attract attention along with speeches by a number of other Fed officials.

Steel stocks showed a substantial move to the upside on the day, driving the NYSE Arca Steel Index up by 3.8 percent. With the jump, the index has reached best closing level in well over two years.

Considerable strength was also visible among financial stocks, with the Dow Jones Banks and the NYSE Arca Broker/Dealer Index climbing by 1.2 percent and 1 percent, respectively.

Airline and electronic storage stocks also saw notable strength, while gold stocks bucked the uptrend amid a decrease by the price of the precious metal.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index advanced by 0.6 percent.

The major European markets also moved to the upside on the day. While the U.K.'s FTSE 100 Index has rose by 0.3 percent, the German DAX Index climbed by 0.9 percent and the French CAC 40 Index jumped by 1.2 percent.

In the bond market, treasuries moved lower for the third consecutive session amid the continued strength on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.5 basis points to 2.434 percent.

Looking Ahead

Trading on Tuesday may be impacted by reaction to the Labor Department's report on producer prices in the month of January.

Yellen is also scheduled to give her semi-annual monetary policy testimony before the Senate Banking Committee.

On the earnings front, Dr Pepper Snapple (DPS), Molson Coors (TAP), and T-Mobile (TMUS) are among the companies due to report their quarterly results before the start of trading on Tuesday.