Day Traders Diary
The S&P 500 advanced 0.2% on Monday, closing higher for a third straight session. The benchmark index is now just 0.6% below its January 26 record high. As for the other major averages, the Dow climbed 0.4% on Monday, hitting its best level since early February, and the tech-heavy Nasdaq added 0.1%.
Optimism ahead of resumed trade talks between the U.S. and China, which are set to kick off on Wednesday, helped fuel the bullish bias on Wall Street and helped push stocks higher across the globe. China's Shanghai Composite rallied 1.1% on Monday, rebounding from a two-year low, and Germany's export-heavy DAX led the way in Europe with a gain of 1.0%.
Eight of eleven S&P sectors finished Monday in the green, with consumer discretionary (+0.6%), industrials (+0.6%), energy (+0.7%), and materials (+0.7%) being the top performers. However, the top-weighted information technology sector (-0.2%) underperformed, keeping the S&P 500 in check.
Within the tech space, giants like Apple (AAPL 215.46, -2.12), Microsoft (MSFT 106.87, -0.71), and Facebook (FB 172.50, -1.30) lost between 0.7% and 1.0%. Chipmakers also trailed the broader market, with Dow component Intel (INTC 46.50, -0.60) sliding 1.3%. The Philadelphia Semiconductor Index lost 0.1%.
On the M&A front, SodaStream (SODA 142.11, +12.26) spiked 9.4% after the Israeli company, which is best known for its at-home carbonated drink maker, agreed to be acquired by beverage and snack giant PepsiCo (PEP 114.84, -0.12, -0.1%) for $144 per share, in cash, or roughly $3.2 billion.
Away from equities, U.S. Treasuries rallied on Monday -- somewhat unusual considering the uptick in equities -- pushing yields lower across the curve; the benchmark 10-yr yield slid five basis points to 2.82%. In currencies, investors kept an eye on the Turkish lira, which lost 1.2% against the U.S. dollar, dropping for a second straight session.
In Washington, President Trump reiterated his displeasure with the Fed, saying he was "not thrilled" with Fed Chair Jerome Powell for raising rates. The president also accused China and the EU of being currency manipulators. Reuters reported the headlines minutes before the close, sending stocks slightly below their session highs.
As for economic data, investors didn't receive any notable reports on Monday, and Tuesday's calendar is also blank.